Trump Allows Tax-Free Dyed Diesel for Highway Use to Cut Fuel Costs

Key Facts

1President Trump signed an executive order temporarily allowing the highway use of tax-free dyed diesel.

2The order defers the $0.244 per gallon federal diesel tax through the end of the year without interest or penalties.

President Trump signed an executive order temporarily allowing the highway use of tax-free dyed diesel to lower fuel costs. Reuters reported that the order defers the $0.244 per gallon federal diesel tax through the end of the year without interest or penalties. The move aims to provide relief to drivers as diesel prices reached $6.32 per gallon, making fuel typically reserved for agricultural and construction use available for standard vehicles.

This direct government intervention comes as retail prices face upward pressure, with the decision intended to support transport sector margins and lower goods costs. According to facts from Oilprice.com, the use of this fuel type, also known as off-road diesel, will provide direct savings to consumers as it is not subject to the federal excise duty.