In a move aimed at easing the financial strain on both motorists and the farming community, President Donald Trump signed an executive order this week that temporarily extends tax‑free red‑dyed diesel to on‑road use. The order defers the federal diesel excise tax through the end of the year while the administration reviews a possible permanent forgiveness of the duty.
How the order works
Red‑dyed diesel has traditionally been reserved for off‑road equipment such as tractors and harvesters. Under the new order, the fuel may be used on highways, and the federal excise tax – normally added at the pump – is suspended until Dec. 31. The White House says the measure is an “unprecedented step” to bring down costs ahead of the upcoming midterm elections.
Potential savings for drivers
Patrick De Haan, head of petroleum analysis for Gas Buddy, estimates that consumers could see a difference of up to $0.60 per gallon when using the tax‑free dyed diesel instead of standard on‑road diesel. He cautions, however, that the actual benefit will vary by state because some jurisdictions have not waived their own diesel requirements. “States can still enforce their own rules and regulations, and some states have not waived diesel requirements, meaning that in some states, it’s still illegal to use off‑road dyed diesel on a road or on a highway,” De Haan explained.
Impact on truckers and food prices
The order could save long‑haul truckers as much as $100 per fill, according to President Trump, who argues that lower transportation costs may eventually be reflected in grocery prices. Yet De Haan notes that a patchwork of state rules could limit the ability of some truckers to take advantage of the tax break, potentially reducing the overall effect on food costs.
What farmers say
Dr. Faith Parum, an economist with the American Farm Bureau Federation, welcomed the step as “a great first step” but warned that farmers will still face higher fuel prices overall. “Last year, around this time of year, it was only $3 a gallon. This year, it’s about $5.61 a gallon on average. So that’s a pretty large jump for farmers and ranchers,” she said.
Scott Thomsen, a fourth‑generation Nebraska farmer who previously supported President Trump, expressed skepticism. “President Trump ran on lowering fuel prices, lowering overall expenses, and so far everything’s inflated in price,” Thomsen said, adding that he might stay home this election season because of rising costs and the ongoing war with Iran.
State enforcement and availability
Availability of red‑dyed diesel will differ by region, and drivers crossing state lines could face fines if they use the fuel where it remains prohibited. A White House fact sheet directs the Secretary of Agriculture to “ensure farmers’ access to dyed diesel in high‑demand areas,” but the order does not compel states to change their own regulations.
Looking ahead
The administration says it will review the policy before the year ends and consider a permanent forgiveness of the diesel excise tax. For now, the temporary waiver offers a modest reprieve for drivers and farmers who can access the fuel legally in their states.
Original reporting: WESH Orlando — read the source article.
