Trump's 'Tax-Free' Red Diesel Order Only Defers the Tax, and Most States Still Ban It on Roads, Expert Says

Lorry and pickup owners caught with untaxed tanks on a US interstate normally risk a fine of at least $1,000, roughly £757 (Credit: Robert F. W. Whitlock / Wikimedia Commons, CC BY 2.0)

President Donald Trump billed his order easing federal restrictions on red diesel for road use as tax relief from near-record prices. The White House's fact sheet says it defers, not removes, the federal tax. GasBuddy fuel analyst Patrick De Haan said 'in most states running red on the road is still illegal.'

Drivers who switch could still owe 24.4 cents a gallon (about 4.88p per litre), if that tax comes due, De Haan said. Only 10 of 50 states had eased their road bans by early October, ClearView Energy Partners found. The IRS had not yet announced the promised federal penalty relief by 13 October.