Executive order temporarily broadens highway use of red-dyed diesel and defers federal excise-tax payments through the end of 2026.
President Trump signed an executive order Monday aimed at easing diesel costs for American farmers, truckers and other workers who depend heavily on fuel.
The order directs the Treasury Department to defer certain federal excise-tax obligations tied to red-dyed diesel through Dec. 31, 2026, without interest or penalties. It also directs federal agencies to help expand access to the fuel where demand is high.
Red-dyed diesel is chemically the same as highway diesel but is normally reserved for off-road uses such as farming and construction because it is exempt from the 24.4-cent-per-gallon federal highway excise tax.
The administration says the temporary change is designed to provide immediate relief amid elevated diesel prices. The order also directs Treasury to explore whether the deferred tax obligations can ultimately be eliminated through available legal or legislative avenues.
Source: White House executive order.
