Trump Signs Executive Order to Cut Diesel Costs by Allowing Red-Dyed Fuel for Highway Use

MT newswire2026/10/06 11:57

07:57 AM EDT, 10/06/2026 (MT Newswires) -- President Donald Trump late Monday signed an executive order aimed at lowering near-record diesel prices by temporarily allowing tax-exempt red-dyed diesel to be used on highways. The order asks the Treasury Department to defer certain diesel fuel tax payments for eligible taxpayers from Oct. 5 through Dec. 31, citing rising prices and restricted global diesel supplies. It also directs the IRS to announce that it will not impose certain penalties when dyed diesel is sold for or used on highways during the period, subject to the requirements of existing law. The order directs Treasury to determine within five days whether tax relief is authorized under existing law and provide penalty relief where permitted. The Transportation Department is directed to coordinate with states and industry groups, while the Agriculture Department is tasked with supporting dyed-diesel access for farmers, according to the order.

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