Archive · 6 Oct 2026
Trump Temporarily Expands Tax-Exempt Diesel Use on Highways
Diesel is the fuel used by many trucks, farm machines, and other equipment.
Some diesel is dyed red to show that it is usually meant for machines that do not drive on public roads.
That fuel is normally not charged the federal highway diesel tax.
President Trump signed an order allowing red diesel to be used more widely on highways for a limited time.
The order also tells the Treasury Department to consider delaying certain federal taxes on that fuel.
The relief is meant to help truckers, farmers, and other people facing high fuel costs.
Diesel prices have risen, and the government says limited supplies are part of the problem.
Cheaper fuel for businesses might help reduce the cost of moving goods, but shoppers are not guaranteed to see lower prices.
The change does not fix shortages or other causes of high fuel prices.
Donald Trump signed an executive order on October 5 to temporarily permit wider highway use of red-dyed diesel and defer certain federal diesel taxes.
The relief covers fuel used from October 5 through December 31, 2026, subject to Treasury guidance and legal authority.
The federal highway diesel tax is generally 24.4 cents per gallon; the White House said the measure could save truckers more than $100 per refill.
The Energy Information Administration reported average on-highway diesel at $6.38 per gallon on September 28, up $2.63 from a year earlier.
The administration cites restricted global supplies and high prices, but consumer savings will depend on fuel markets and whether tax relief is passed on.
- Who
- President Donald Trump signed the order; truckers, farmers, and other diesel users may benefit.
- What
- The order temporarily allows wider highway use of dyed diesel and directs Treasury to consider deferring certain federal diesel taxes.
- When
- Signed October 5; the specified relief period runs through December 31, 2026.
- Where
- United States.
- Why
- The administration says the measure is intended to ease fuel costs amid high prices and restricted global diesel supplies.
Administration’s case
Limits and uncertainties
Expected relief
Administration’s case
The White House says allowing dyed diesel for highway use and deferring applicable federal taxes can reduce costs for truckers, farmers, and workers.
Limits and uncertainties
The article says consumer savings are uncertain and depend on supply, refinery capacity, crude prices, state taxes, and whether businesses pass savings on.
Scope of the measure
Administration’s case
The order directs Treasury to explore whether the deferred taxes can ultimately be eliminated.
Limits and uncertainties
The relief is temporary and conditional; it does not directly resolve global supply disruptions, crude oil costs, or limited refining capacity.
- Federal diesel tax
- Generally 24.4 cents per gallon for highway use.
- Diesel price
- The national average on-highway price was $6.38 per gallon on September 28.
- Year-over-year price change
- The September 28 average was $2.63 per gallon higher than a year earlier.
- Order signed
- October 5.
- Relief period
- October 5 through December 31, 2026, subject to Treasury guidance and applicable legal authority.
- Potential savings cited
- The White House said truckers could save more than $100 per refill.
- Other supply action
- G7 countries agreed to release 100 million barrels of crude oil and diesel from emergency reserves.