Trump eases diesel tax and prepares DPA directive to boost fuel production
The White House said President Donald Trump is preparing a memorandum for department heads that would invoke the Defense Production Act to increase oil and diesel production ahead of the November elections. Earlier this month the administration issued a series of executive orders aimed at lowering diesel costs. One order temporarily permitted the use of red-dyed diesel, normally exempt from highway taxes, for trucks and farms through the end of 2026, and another deferred federal excise-tax payments on the fuel until Dec.
31. The Treasury Department said it would assess the orders and expected implementation within five days. Industry groups warned that the measure offered limited savings and could create logistical and liability challenges for fuel retailers, while the overall goal was to reduce the tax burden on diesel users.
