Trump orders expanded use of tax-free dyed diesel
The president moved to defer tax obligations, and possibly provide further relief, for the remainder of 2026.
U.S. President Donald Trump signed an executive order on Monday, allowing drivers to utilize tax-exempt red-dyed diesel fuel on public roads. The decision followed a surge in pump prices, partly attributed to tensions in the Iran conflict, which had impacted Trump's Republican Party in the run-up to the upcoming U.S. midterm elections.
During a rally, Trump stated that the order would officially waive the off-road requirement and permit anyone to purchase tax-free red-dyed diesel for any purpose. The president confessed to not being well-versed in the specifics of the fuel, jokingly telling the audience, "I don't know what the hell it is, but whatever it is, it's supposed to be very good."
The White House followed up with a fact sheet detailing the order, indicating that the measure was more nuanced than initially presented. Instead of eliminating the tax entirely, the order directs Treasury Secretary Scott Bessent to postpone the collection of the tax on dyed diesel used on roads until the conclusion of the year.
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