Diesel Prices Relief Act of 2026

**What Happened:** On May 12, 2026, Rep. Vindman (D-VA) introduced H.R. 8772, the Diesel Prices Relief Act of 2026, which would set the federal excise tax on diesel fuel (other than kerosene) to zero from the date of enactment through December 31, 2026. It would also waive the Leaking Underground Storage Tank Trust Fund financing rate. The bill includes a policy statement that the tax reduction should be passed on to consumers and grants Treasury enforcement authority. The bill was referred to the House Committee on Ways and Means. **Money Trail:** The bill does not authorize new spending; it reduces an existing tax. The lost revenue to the Highway Trust Fund and LUST Trust Fund would be offset by transfers from the general fund. No specific dollar amount is stated because the tax reduction is a revenue loss that depends on diesel consumption. For context, the federal diesel tax is 24.3 cents per gallon; total annual diesel tax revenue is roughly $12 billion. A full-year holiday would cost approximately $12 billion in lost revenue, but the bill covers only the remainder of 2026 (about 7 months), so the revenue loss would be around $7 billion. This is a significant fiscal cost, but it is not an appropriation. **Winners and Losers:** If passed, the primary beneficiaries would be commercial diesel consumers—trucking companies ($JBHT, $ODFL, $XPO), railroads ($UNP, $CSX), and logistics firms ($UPS, $FDX). These companies would see immediate cost savings on fuel. Refiners ($VLO, $PSX, $MPC) would be largely neutral because the bill explicitly aims to pass savings to consumers, and Treasury has enforcement authority. However, if enforcement is weak, refiners could retain some of the tax windfall as profit. The impact on oil majors ($XOM, $CVX) is smaller as diesel is a smaller portion of their integrated business. **Legislative Momentum:** The bill has only one cosponsor (Rep. Davis, R-NC) and is at the earliest stage. No committee hearings or markups have occurred. Similar fuel tax holiday bills in prior Congresses have rarely advanced. The 119th Congress is in its second session, and with midterm elections approaching, tax-related bills face hurdles. The bill's path to passage is uncertain and likely low probability. **Timeline:** The next steps would be committee consideration, potential hearings, and then a vote by the full House. Even if passed, the Senate would need to pass a companion bill. Given the current schedule, passage this year is unlikely. Investors should not base near-term decisions on this bill. **Real Market Data:** No real market data was provided. The above analysis is based on the bill's text and structural positioning.