Diesel at $6.38 per gallon, $2.62 higher than a year ago
President Donald Trump on Monday night signed an executive order temporarily allowing red-dyed “off-road” diesel to be used on highways and deferring the federal excise tax on the fuel, directing federal agencies to expand access through the end of the year. Trump announced the order at a rally in Grand Island, Nebraska for Republican Sen. Peter Ricketts, calling it “historic.”
The order is part of Trump’s stated effort to lower diesel prices that have hit American truckers and farmers. Trump, who has blamed Ukraine for the price surge, signed the order the same day he posted on Truth Social blaming Ukraine’s attacks on Russian refineries for high gas prices.
The order directs the secretaries of the Treasury, Transportation, and Agriculture to expand access to dyed diesel — fuel dyed red to indicate it is exempt from federal highway fuel taxes and is generally restricted to off-road uses such as farming, construction equipment, and heating. The window runs from Monday through Dec. 31. The Treasury is also directed to defer the federal excise tax that would normally become due when dyed diesel is used in highway vehicles, and to explore ways to eliminate the obligation to pay the tax when due. The repayment date was not stated.
Rapid Response 47, a social media account, posted that the deferred excise tax would carry “no interest, no penalties.”
A White House fact sheet claims American truckers will save more than $100 per tank. According to the U.S. Energy Information Administration, on-highway diesel fuel costs $6.38 as of late September, up $2.62 from a year earlier. Trump signed the executive order as diesel prices have soared in the United States amid a global supply shortage worsened by the U.S. war against Iran and the years-long war between Ukraine and Russia.
Trump has blamed the cost of diesel on Ukraine, which has for years attacked Russian refineries to squeeze the Kremlin’s energy revenue that funds the war. Last month, Trump said he told President Volodymyr Zelensky of Ukraine to stop attacking Russia’s diesel-fuel-producing refineries, stating “he’s causing a shortage of diesel fuel.” On his Truth Social account earlier Monday, Trump claimed the Strait of Hormuz, a vital energy route that has been restricted by Iran, was “no longer” driving high gas prices, instead blaming Ukraine for attacking Russia’s refineries and claiming Democratic-led states were closing theirs.
Natalie Harp, Trump’s special executive assistant, brought him the document at the lectern, which he signed as the crowd cheered. Several Republicans were quick to celebrate the executive order online. Rep. Jason Smith of Missouri called it “a much-needed step to lessen the burden that increased fuel prices have had on farmers, ranchers and the entire agricultural community,” and Louisiana Gov. Jeff Landry said it was “a HUGE WIN.”