Trump set to sign order widening access to tax-exempt red diesel

Mixed · 2President Donald Trump is preparing an executive order, expected on Monday 5 October 2026, to expand access to tax-exempt red-dyed diesel, which is typically restricted to off-road uses such as farming and construction (IJR dated the day as Monday, Oct. 6). 1 2 Right · 2The Washington Examiner, citing Reuters, said the order would also direct the Transportation Department to coordinate with states to waive taxes on road diesel; IJR listed that among reported elements, along with a Treasury Department review of certain diesel-related taxes and possible non-enforcement of dyed-diesel restrictions, and said full details have not been released. 3 1 Left · 1The Independent, citing Politico and three unnamed sources, said Trump would announce a multi-pronged plan at the Nebraska State Fair in Grand Island, alongside Republican Sen. Pete Ricketts, who faces independent challenger Dan Osborn. It said he would direct officials not to enforce federal regulation of dyed diesel, urge states to increase its availability and order a Treasury review of federal diesel taxes. The White House did not immediately respond to its inquiry. 2

Right · 2US average diesel was $6.32 a gallon, according to both outlets. IJR said that was down 13 cents on the week but $2.63 higher than a year earlier, after an all-time high of $6.53 last month and a rise of more than 60% from $3.76 on 28 February. 1 3 Right · 1The Washington Examiner attributed elevated prices to conflict in Ukraine and Iran straining the global fuel supply chain, and said high prices hit sectors that rely on diesel, especially agriculture. 3 Right · 1Several states have already acted: Ohio, Georgia and Kentucky temporarily suspended their state diesel tax, while Alabama, Arkansas, Louisiana, Missouri, Montana, Nebraska, North Carolina, North Dakota, Oklahoma and Texas have allowed greater access to dyed diesel. 3

Right · 2Last Friday the G7 and partners announced a coordinated release of up to 100 million barrels of emergency oil and diesel reserves through the IEA. Trump then said the US would not pursue a diesel export ban, telling reporters "We were never going to do it." The Examiner noted some administration members and fuel experts argued a ban would push US prices higher. 1 3 Right · 1The move comes ahead of the 3 November midterms. IJR said some Republicans oppose diesel-tax waivers because the revenue helps fund roads and infrastructure, and that it remains unresolved how much of the reserve release is new supply and how far wider access will cut pump prices. Trump was due to travel to Nebraska on Monday. 1 Left · 1Analysts quoted by The Independent doubted the measure would do much. Patrick De Haan of GasBuddy said wider dyed-diesel access could save some drivers about 60 cents a gallon but that "farmers already use dyed diesel and are still paying record prices" and "Taxes aren't the problem, supply is." Shuting Pomerleau of the American Action Forum said there are no effective ways to quickly bring down diesel prices, and Dow Jones Energy's Denton Cinquegrana said suspending fuel taxes risks "kicking the can down the road" because roads must still be fixed. 2

Left · 1The Independent tied the move to weak polling: it cited polls showing Democratic gubernatorial candidates ahead in Alaska, Iowa, Ohio and Texas, a close Nebraska Senate race, and a Democratic lead of 8.9 points on the generic congressional ballot, per Silver Bulletin. It attributed tight diesel supply to Trump's war against Iran, now in its eighth month, and Ukraine's strikes on Russian refineries, and said 10 states making up about a third of US diesel sales had already widened dyed-diesel access. 2