Trump Signs Executive Order Allowing Off-Road Dyed Diesel for Highway Use
TL/DR –
President Donald Trump has signed an Executive Order allowing the temporary use of off-road “dyed” diesel for highway use and deferring the federal excise tax, thereby reducing fuel costs for Americans. The order includes directives for several government departments, including the Treasury, Transportation, and Agriculture to ensure accessible dyed diesel for different sectors, and to explore methods of eliminating deferred taxes. The Trump administration’s policies, which have prioritized American energy dominance, have worked towards reducing energy costs and supporting American farmers and truckers.
Trump’s Executive Order to Increase American Diesel Affordability
President Donald J. Trump has signed an Executive Order authorizing the temporary use of off-road “dyed” diesel for highway use, deferring the Federal excise tax to decrease costs for Americans. This move aims to facilitate a more affordable diesel supply, directly benefitting American consumers, farmers, and truckers.
Key Points of the Executive Order
- The Order asks the Secretary of the Treasury to confer with the Secretary of War to pause payment of the Federal excise tax on on-road dyed diesel with no interest or penalties for the rest of the year.
- It instructs the Secretary of Transportation to work with States, industry leaders, and labor organizations to increase access to dyed diesel.
- The Secretary of Agriculture is directed to ensure farmers’ access to dyed diesel in high-demand areas and to inspire similar actions by States.
- The Director of the White House Office of Intergovernmental Affairs is tasked with encouraging more States to adopt policies that align with this Order.
President Trump’s administration is working tirelessly to improve fuel affordability in light of the global conditions affecting diesel supply. Farmers and truckers, the life-blood of the American economy, have been negatively impacted by restricted global diesel supply due to the Russia-Ukraine war and a global refining capacity shortage.
Addressing Diesel Taxation and Enforcement
- The enforcement discretion of the Administration and State Governors can be exercised to halt inspections and waive tax liability for on-road dyed diesel use.
- These measures are expected to save American truckers over $100 per refill, providing economic relief for American workers, farmers, and truckers.
- Diesel taxation is determined by intended use. Dyed diesel, intended for off-road purposes and not taxed, is identifiable by law enforcement to enforce penalties and back taxes for on-road use.
American Energy Dominance and Support for Farmers and Truckers
The Trump administration’s economic and energy policies aim to reduce costs and provide benefits to hardworking Americans. Trump’s Working Families Tax Cuts have delivered for farmers and ranchers, modernizing the farm safety net, expanding market access for farmers, investing in rural economies and returning over $40 billion to farmers since January 2025.
- Trump’s administration has prioritized American truckers, boosting their earnings by over 7% by replacing illegal immigrant truck drivers with American veterans.
- The Department of Transportation eased its hours of service rules, allowing truck drivers handling fuel shipments to drive additional hours, lowering fuel costs for all Americans.
- In August 2026, the largest oil deal in world history was made with Venezuela, securing 65 billion barrels of oil to increase America’s oil supply, double oil reserves, and decrease gas prices.
- President Trump also negotiated with Europe to release 100 million barrels of refined diesel from strategic reserves in October 2026, a step expected to reduce diesel prices for Americans.
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