Trump Signs Executive Order Aimed At Lowering Diesel Prices 

President Trump signed an executive order on Monday evening allowing for the broader use of tax-exempt dyed diesel, otherwise known as off-road diesel, seeking to ease fuel costs ahead of the midterm elections.

“The order temporarily opens highway use of tax-free dyed diesel, deferring the federal diesel tax on that fuel through the end of the year, no interest, no penalties,” the White House said.

The statement continued, “With elevated diesel prices and tightened global supply driven by the Russia-Ukraine war and a lack of refining capacity around the world, this is President Trump’s affordability agenda in action.”

Trump signed the order while on the campaign trail in Nebraska, where elevated fuel costs are squeezing farmers during the fall harvest, calling it an “unprecedented step to bring down costs.”

“Today, I am announcing another unprecedented step to bring down costs. For many years, farm vehicles, construction equipment, and other off-road vehicles have used what is known as ‘red dye’ diesel… which is exactly the same as normal diesel, but is sold tax-free for off-road vehicles and big trucks… Tonight, I am going to sign a historic Executive Order to officially waive the off-road requirement and allow anyone to purchase tax-free red dye diesel for any reason,” Trump told the audience.

President Trump signs an executive order removing red dye diesel requirements, a tax-free type of diesel reserved for certain off-roading cars. By lifting the requirements anyone who drives a diesel-powered vehicle can purchase it. https://t.co/T9aCKSmqFd

— CSPAN (@cspan) October 6, 2026

As of Tuesday morning, US retail diesel prices averaged around $6.31 a gallon at the pump, down from September’s record of $6.53 but roughly 68% above the $3.76 recorded before the US-Iran conflict began in late February.

Trump Plans To Ease Off-Road Diesel Restrictions Ahead Of Midterms

Bloomberg reported late Monday afternoon that the Trump administration is preparing to loosen restrictions on tax-exempt dyed diesel, seeking to ease costs for the industrial fuel that powers the economy amid a global refining crisis.

The report cites people familiar with the matter, and the new policy could be announced as soon as today.

The plan would allow broader use of dyed diesel, better known as off-road diesel, which is mostly used in farm machinery, construction equipment and other off-road applications. This move would allow for savings of 24 cents per gallon because the fuel is exempt from federal excise tax.

“While the move wouldn’t directly lower operational costs for harvesters, tractors, excavators and other off-road equipment that already runs on tax-exempt red diesel, it is seen as potentially cutting the expense to run pickup trucks and other on-road vehicles,” the outlet said.

As of Monday, US retail diesel prices averaged around $6.32 a gallon at the pump, down from September’s record $6.53 but roughly 68% above the $3.76 recorded before the US-Iran conflict began in late February.

Ukraine’s bombardment of Russian refineries and the Gulf crisis have disrupted refining and petroleum-product shipments worldwide.

Last week, President Trump’s threat to ban diesel exports to Europe spurred G7 member nations to begin releasing 120 million barrels of diesel over the next six months.