Trump Signs Executive Order for Temporary Use of Tax-Exempt Red-Dyed Diesel
What happened
On October 5, 2026, President Trump signed an Executive Order allowing the temporary on-highway use of tax-exempt red-dyed diesel fuel.
The Context
- Record diesel prices: Diesel prices exceeded $6 per gallon due to geopolitical tensions and supply disruptions.
- Tax relief: The order defers the federal excise tax of 24.4 cents per gallon, enabling cheaper fuel access for farmers and truckers.
- Implementation: The order is effective through December 31, 2026, with states encouraged to adopt similar measures.
The Number
— the federal highway excise tax that is now deferred, potentially saving you over $100 per refill.
Takeaway
As the situation evolves, keep an eye on how this order impacts diesel prices and supply chains in the coming months.
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