Trump Plans to Ease Limits on Tax-Exempt Dyed Diesel
The plan would widen use of tax-exempt dyed diesel and could cut prices by 24 cents a gallon, officials said.
- President Donald Trump is preparing an executive order to expand access to tax-exempt diesel, with the administration expected to unveil the policy on Monday to lower fuel costs before the Nov 3 elections.
- High diesel prices reached a record of about $6.50 per gallon last month, creating political risk for Trump. Farm-state lawmakers pressured the administration to act, though Trump declined to ban exports of the fuel.
- The administration plans to permit wider use of red diesel, typically reserved for farm-state equipment, which is exempt from the 24-cent-per-gallon federal excise tax. This change could reduce retail prices.
- Directing the Department of Transportation to coordinate with states to waive road diesel taxes, the order follows a Group of Seven agreement to release 100 million barrels of emergency stocks.
- Conflicts in Iran and Ukraine have disrupted refineries in Russia and the Middle East, keeping global fuel prices volatile. These geopolitical factors continue to impact the market for fuel integral to trucking goods.
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Trump to issue order expanding access to tax-exempt diesel ...
The Trump administration is preparing to ease restrictions on the use of tax-exempt, so-called red diesel, in an effort to bring down fuel prices before the November midterm elections, Bloomberg reports.
U.S. President Donald Trump will announce on Monday a package of executive measures aimed at reducing the high price of diesel before... ~ 05.10.2026, PRIM
Donald Trump enlists measures to alleviate diesel costs, including changes in dyed fuel and a tax review. However, analysts warn that the root of the problem is supply, not taxes.
The Trump administration is reportedly preparing to ease restrictions on the use of "red-dyed diesel," which is exempt from federal tax, in an effort to lower high diesel prices.
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