Trump signs order allowing road use of tax-exempt dyed diesel

U.S. President Donald Trump signed an executive order on Monday, allowing the general use of tax-exempt red dyed diesel for road purposes during the remaining part of the year. This decision comes amid soaring fuel prices caused by oil supply disruptions in the Middle East and refineries' interruptions due to the Russia-Ukraine war.

The order defers the payment of Federal excise tax on dyed diesel, a fuel typically used in farming and banned from highways, according to a White House factsheet. Dyed diesel, almost chemically identical to on-road diesel, is distinguished by its red coloring, serving as a tax enforcement marker. The fuel price for diesel spiked to a record high of $6.529 a barrel in late September.