President Donald Trump is temporarily allowing tax-exempt red-dyed diesel to be used on U.S. highways, an extraordinary step aimed at cutting costs for truckers and farmers as record fuel prices squeeze businesses and consumers just weeks before the midterm elections.
Trump signed an executive order Monday temporarily expanding the use of red-dyed diesel, fuel normally reserved for off-road equipment and exempt from federal highway taxes. The administration is also deferring collection of the federal excise tax on highway diesel through the end of 2026, potentially giving the transportation industry additional relief as diesel prices remain near historic highs.
