American Automobile Association

North Carolina's average gas price has fallen to $3.55 per gallon, the lowest in the nation according to AAA, after state lawmakers suspended the 41-cent gas tax roughly two weeks ago. Prices were $4.12 a month ago and $2.82 a year ago. Attorney General Jeff Jackson set up a portal for consumers to report stations not passing along the savings, with more than 500 complaints filed, most in the first week. Some retailers say they couldn't lower prices until clearing existing inventory bought at the higher tax rate. Jackson is focusing enforcement on outliers, noting the suspension will cost the state hundreds of millions in revenue before it expires at the end of November.

President Trump signed an executive order deferring collection of the federal excise tax on dyed (off-road) diesel through the end of the year and barring IRS penalties for using it on highways, as diesel prices topped $6 per gallon nationally for the first time, driven higher by the U.S.-Israel conflict with Iran, restrictions near the Strait of Hormuz, and Ukrainian strikes on Russian refineries. Iowa Gov. Kim Reynolds followed with a proclamation allowing dyed diesel on public roads to haul crops, fertilizer and manure through February 2027. At least a dozen other Republican governors, plus North Carolina's Democratic governor, took similar action. Idaho Gov. Brad Little signed a separate order suspending state dyed-diesel inspections for 30 days while agencies review enforcement policy, with legislative leaders voicing support.

Agriculture Secretary Brooke Rollins said federal estimates project roughly $640 million in savings for Iowa farmers this harvest, with state actions adding further relief. Energy analysts cautioned the tax deferral mainly benefits truckers and will do little to address the underlying supply-driven price spike. Farm groups and Republican officials praised the moves as timely relief amid tight farm margins ahead of the November elections.