.png)
WASHINGTON, United States – US President Donald Trump on Monday signed an executive order allowing drivers to use red-dyed diesel, a fuel normally reserved for farm machinery and other off-road equipment, on public roads under measures aimed at reducing diesel costs.
The move came as surging pump prices linked to the Iran war weighed on Trump’s Republican Party weeks before the US midterm elections.
Speaking at a rally in Nebraska, Trump said the order would “officially waive the off-road requirement and allow anyone to purchase tax-free red-dyed diesel for any reason”.
The president also admitted he was unfamiliar with the fuel, joking: “I don’t know what the hell it is, but whatever it is, it’s supposed to be very good.”
Red-dyed diesel is essentially the same fuel as standard diesel but is exempt from highway fuel taxes because it is normally used for off-road purposes.
However, a White House fact sheet released alongside the order described a more limited measure than the one Trump announced at the rally.
Rather than immediately scrapping the tax, the order instructs Treasury Secretary Scott Bessent, in consultation with Defence Secretary Pete Hegseth, to defer the tax owed on dyed diesel used on roads until the end of the year, without interest or penalties, and to explore ways to cancel the charges altogether.
The White House said federal authorities and state governors could use their discretion to halt inspections and waive the tax liability drivers would otherwise face.
The fact sheet made no mention of Iran, instead attributing the price surge to the Russia-Ukraine war and a global shortage of refining capacity.
It also accused Democratic-led states of closing refineries as part of green energy policies.
At the Nebraska rally, Trump also praised a deal struck with Europe this month to release 100 million barrels of refined diesel from strategic reserves over the next four months.
He had previously floated a ban on US diesel exports. Diesel is widely used to power trucks, farm equipment and construction machinery.
Diesel prices in the United States have hit record highs of more than US$6 a gallon in recent weeks, with export restrictions imposed by major supplier Russia following Ukrainian attacks on its fuel facilities adding to pressure on global markets. –AFP
