Fuel groups caution truck stops over Trump-ordered red dye diesel use
Industry associations warned that the executive order allowing red-dye diesel on highways offers limited benefit and poses logistical and liability risks for retailers.
President Donald Trump signed an executive order that temporarily permits the use of red-dye diesel, a fuel normally exempt from federal excise taxes for off-road equipment, on public highways. The White House said the measure is intended to lower fuel prices while Treasury Secretary Scott Bessent is directed to defer certain diesel tax payments and provide penalty relief where allowed by law.
Energy Marketers of America advised gas stations to proceed with caution, noting that any relief depends on Treasury guidance and that deferral does not constitute forgiveness. The group also said the order does not address EPA or state restrictions on dyed diesel.
The Society of Independent Gasoline Marketers of America and the National Association of Truck Stop Owners warned members that most reputable diesel retailers are unlikely to adopt the practice, citing the continued tax liability and limited upside. They added that residual dye can remain in tanks and fuel systems, creating logistical challenges and increasing liability for sellers.
Todd Spencer, president of the Owner-Operator Independent Drivers Association, said allowing broader use of red-dye diesel would provide minimal relief and emphasized the need for market stability to reduce long-haul costs.
The order comes amid a sharp rise in diesel prices, which have climbed nearly 70% since the start of the Iran-related conflict and are further pressured by disruptions in Russian diesel exports linked to the Ukraine war. The White House did not immediately respond to requests for comment.