Trump Signs Order to Allow Wider Access to Tax-Free Diesel

US President Donald Trump signed an executive order on Monday to expand access to tax-exempt diesel.

Trump signed the order during a rally in Nebraska, saying the directive will waive the off-road requirement and allow anyone to purchase tax-free “red dye” diesel.

Prices for diesel, which is important for transporting goods, have increased due to the US-Israeli war on Iran and the Russian invasion of Ukraine. The conflicts have led to attacks on refineries in the Middle East and Russia.

Trump said the directive will waive the off-road requirement for tax-free diesel and allow anyone to buy the red dye diesel fuel used by the agriculture industry and some off-road vehicles.

The order released by the White House directs the Treasury secretary, in consultation with the Pentagon chief, “to defer payment of the federal excise tax imposed for on-road use of dyed diesel fuel for the remainder of the year without interest or penalties, and to explore pathways to eliminate the obligation to pay the deferred taxes.”

It also directs the US agriculture secretary to “ensure farmers’ access to dyed diesel in high-demand areas” and asks the transportation secretary to coordinate with states, industry leaders and labor organizations on access to dyed diesel.

G7 countries announced last week that they would release 100 million barrels of diesel after pressure from Trump, who had considered banning US exports of the fuel. However, it was not clear how much of the release would represent entirely new supplies.

Trump’s approval rating remained at a record-low 32% in recent days, according to a Reuters/Ipsos poll completed on Monday. Americans remain most concerned about the high cost of living, driven in part by rising gasoline and diesel prices linked to the US war on Iran.