What happened
President Donald Trump has signed an executive order allowing the use of red-dyed diesel on highways and deferring federal taxes on the fuel through 2026. The order, signed at a rally in Grand Island, Nebraska, is expected to bring significant savings to farmers. According to Agriculture Secretary Brooke Rollins, the move is projected to result in $640 million in savings for farmers.
The executive order temporarily waives the off-road requirement for red-dyed diesel, allowing it to be used on highways without incurring federal excise taxes. The federal diesel tax is currently 24.4 cents per gallon, which translates to around $60 on a 250-gallon fill. With the order in place, savings are expected to exceed $100 per fill in states that match the federal action.
The White House has attributed the high diesel prices and restricted global supply to the Russia-Ukraine war and insufficient refining capacity worldwide. The administration has also criticized Democrat-led states for shutting down refineries in the name of 'Green Energy' policies.
The order has been welcomed by various officials, including Vice President JD Vance, who praised the president's swift action in addressing the issue. The move is seen as a significant step in providing relief to farmers and truck drivers who have been affected by the high diesel prices.
