In the administration’s latest move to cut costs for motorists, President Donald Trump has expanded the use of less expensive red-dyed diesel, commonly used in agriculture, to broader applications to help reduce record-high fuel prices.
In addition to the order, the Group of Seven nations agreed to release 100 million barrels of diesel and crude reserves after Trump pressured for a ban on U.S. fuel exports.
The President signed an executive order on Monday evening, enabling truckers and farmers to temporarily use this tax-exempt, red-dyed diesel and defer related taxes until the end of the year. This type of diesel, typically used in farm machinery, construction equipment, trucks, and off-road vehicles, is exempt from the 24.4-cent-per-gallon highway fuel tax.
The executive order also instructs the Treasury Secretary, in consultation with the Department of War, to defer collecting federal highway diesel excise taxes through the end of 2026 without interest or penalties.
Before signing the order, the Trump administration cited global supply constraints linked to the Ukraine conflict and limited refining capacity as factors driving up diesel prices and household expenses.
Although using dyed diesel on public roads is illegal and can lead to fines for tax evasion, some states have relaxed restrictions to help Americans manage soaring fuel costs.
The President’s latest cost-cutting measure follows a September milestone when the national average diesel price exceeded $6 per gallon for the first time, as supply disruptions from conflicts in Ukraine and Iran raised transportation costs across the country.
In a press release, the White House said truckers could save more than $100 per tank under the new executive order.
By CEO NA Editorial Staff
