Trump Authorizes Temporary Highway Use of Red-Dyed Diesel to Ease Trucker Fuel Costs

Former Energy Secretary Dan Brouillette discusses falling oil prices and President Donald Trump’s energy agenda on ‘Kudlow.’

President Donald Trump announced plans to sign an executive order granting truckers temporary permission to use red-dyed diesel — a fuel typically restricted to off-road vehicles — in a move aimed at reducing soaring fuel expenses.

“They’re going to be very happy in about two seconds,” Trump said moments before unveiling the relief measure.

The directive permits the use of off-road diesel on public highways and defers the federal excise tax through the end of the year without interest or penalties, according to the White House. Officials estimate the change could save truckers more than $100 per fill-up.

While the president described the fuel as “tax free,” the order technically postpones the federal tax obligation while instructing Treasury officials to explore options for eliminating the deferred liability altogether.

Red-dyed diesel, distinguished by its color to help authorities identify untaxed highway use, is ordinarily reserved for agricultural equipment and construction machinery. The order also tasks officials with safeguarding farmers’ access to the fuel supply and encourages states to implement matching tax relief measures.

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