Key facts
- President Donald Trump signed an executive order to reduce diesel costs.
- The order permits tax-free dyed diesel for highway use.
- The federal diesel excise tax is deferred through the end of the year.
- The measure is expected to save drivers up to $100 per fill.
- The action aims to provide relief to farmers, truckers, and working families.
President Donald Trump has signed an executive order aimed at reducing diesel costs for American consumers, particularly farmers and truckers. The order, signed in Nebraska, allows for the highway use of tax-free dyed diesel and defers the federal diesel excise tax through the end of the year. This measure is intended to provide immediate financial relief as diesel prices remain near record highs.
According to the White House, the action is expected to save drivers up to $100 per fill. President Trump stated that 'red dye' diesel, typically used for off-road vehicles and big trucks, is chemically identical to normal diesel but sold tax-free. The executive order waives the off-road requirement, enabling anyone to purchase tax-free red dye diesel for any reason.
Vice President JD Vance and White House Chief of Staff Susie Wiles both commented on the action, framing it as a move to support hard-working Americans and put money back into their pockets. Secretary of Agriculture Brooke Rollins highlighted the administration's focus on energy dominance and its impact on agriculture, thanking the President for the enforcement discretion on dyed diesel use.
Agricultural organizations also expressed gratitude for the measure. Zippy Duvall, President of the American Farm Bureau Federation, noted that allowing dyed diesel fuel for over-the-road use would bring significant relief to farmers, especially during harvest season, as the federal highway diesel tax is over 24 cents per gallon. Dave Walton, Vice President of the American Soybean Association, echoed these sentiments, stating the policy aligns with actions taken by many soybean-producing states and addresses high fuel costs impacting farmers' bottom lines. Missouri Governor Mike Kehoe also commented, noting the order provides commonsense flexibility to lower transportation costs for agriculture.