Trump signs order permitting off-road diesel on highways and deferring fuel tax
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An executive order signed by President Donald Trump temporarily allows red-dyed off-road diesel to be used on highways and postpones the federal excise tax on diesel until the end of the year.
President Donald Trump issued an executive order that temporarily lifts the restriction on red-dyed off-road diesel, allowing it to be used on highways. The order also defers the federal excise tax on diesel fuel through Dec. 31 without interest or penalties, and directs Treasury officials to explore ways to eliminate the deferred tax liability.
The White House said the measure is intended to reduce fuel costs for truck drivers, farmers and other workers, estimating savings of more than $100 per refill for truckers. The Transportation Department is tasked with coordinating the change with states, industry groups and labor organizations, while the Agriculture Department will monitor supply for farmers in high-demand areas.
The order also calls on White House intergovernmental affairs officials to encourage states to adopt complementary tax-relief policies. In related actions, the administration announced a waiver permitting truck drivers hauling gasoline and diesel to operate additional hours, and reported a separate agreement with European partners to release 100 million barrels of refined diesel from strategic reserves over the next four months.