Trump to order expanded access to tax-exempt diesel fuel

Trump officials have been preparing action around dyed diesel for more than a week. The announcement comes as surging fuel prices, attributed to the war against Iran and Ukrainian attacks against Russian refineries, have angered farmers and contributed to persistent inflation. Some Republican governors have already taken similar steps on dyed diesel.

The executive actions also include so-called non-enforcement of dyed diesel limitations. The announcement would come after weeks of messaging on high diesel prices, with Trump previously saying he was considering an export ban but later stating he would not impose one. Some Republicans have opposed efforts to waive excise taxes on diesel, as states use those revenues for infrastructure projects.

Last week, G7 countries announced they would release 100 million barrels of diesel, following pressure from Trump. It is unclear how much of that release would consist of entirely new supplies or compliance with a global agreement made in March.