Trump moves to cut diesel costs with order on tax-free fuel

WASHINGTON

Gas prices at a Shell gas station above $6 a gallon for regular gasoline and $8 a gallon for diesel are displayed across from a US flag outside of the Marathon Petroleum Corp. Los Angeles Refinery in Carson, California on September 22, 2026. (AFP File Photo)

U.S. President Donald Trump has signed an executive order allowing drivers to use tax-exempt red-dyed diesel, a fuel normally reserved for farm machinery and other off-road equipment, on public roads.

The move came as surging pump prices tied to the Iran war weighed on Trump's Republican Party weeks before the U.S. midterm elections.

Speaking at a rally in Nebraska, Trump told supporters the order would "officially waive the off-road requirement and allow anyone to purchase tax-free red-dyed diesel for any reason."

The president admitted he was unfamiliar with the fuel, joking to the crowd: "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 it is exempt from highway fuel taxes.

A White House fact sheet released alongside the order described a more limited measure than the one Trump announced on stage.

The fact sheet made no mention of Iran, instead blaming the price surge on the Russia-Ukraine war and a global shortage of refining capacity.

It also accused Democratic-led states of closing refineries in the name of green energy policies.

Diesel prices in the United States have hit record highs above $6 a gallon in recent weeks, with export restrictions imposed by major supplier Russia after Ukrainian attacks on its fuel facilities adding to pressure on global markets.