Trump Signs Executive Order Expanding Tax-Free Red-Dyed Diesel Use

President Trump has signed an executive order temporarily expanding access to tax-free red-dyed diesel in an effort to lower fuel costs for truckers and farmers.
The order waives penalties tied to using dyed diesel on highways and directs the Treasury to defer certain federal diesel excise-tax payments through December 31.
The federal diesel tax is currently 24.4 cents per gallon.
For a 250-gallon fill, that translates to roughly $60 in federal tax savings.
The White House says savings could exceed $100 per fill in states that adopt corresponding tax relief.
Red-dyed diesel is chemically the same as conventional diesel but has traditionally been restricted to tax-exempt off-road uses such as farming and construction.
The move comes as elevated diesel prices continue to pressure freight, agriculture and transportation costs.
The policy provides temporary relief, but it does not directly increase diesel supply, meaning the broader impact will still depend heavily on global refining capacity and fuel availability.