Trump’s Executive Order Expands Red-Dyed Diesel Access Amid Rising Fuel Costs

Trump's executive order allows red-dyed diesel use on highways, aiming to lower costs for truckers and farmers. Experts question its effectiveness.

Editorial Desk

October 6, 2026 One Min Read

POLICY WIRE — Washington, D.C. — President Donald Trump has issued an executive order temporarily expanding access to tax-free red-dyed diesel for highway use, a move aimed at easing financial pressure on truckers and farmers facing high fuel costs.

The directive, announced during a rally in Nebraska, lifts restrictions that previously limited the use of red-dyed diesel to off-road vehicles. This fuel, which is exempt from the 24.4-cent federal tax on regular diesel, can now be used by drivers without incurring additional taxes or penalties.

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Diesel prices remain elevated, with the national average standing at $6.31 per gallon as of Tuesday, according to AAA—still significantly higher than the $3.76 recorded before the Iran war began. While the White House claims the order could save drivers over $100 per fill-up, experts caution that the impact may be limited due to state-level bans and potential enforcement challenges.

Reporting by Policy-Wire (PW)

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