News of the Day October 6, 2026
President Trump Signs Executive Order Aimed at Lowering Diesel Prices

President Donald Trump signed an executive order late Monday aimed at bringing down near-record diesel prices by waiving restrictions on cheaper red-dyed diesel. Red-dyed diesel is the same as regular diesel. It’s just untaxed and dyed red to distinguish it for off-road use only, such as for tractors or industrial purposes.

Allowing broad use of tax-exempt diesel could be especially helpful for truckers grappling with a historic spike in diesel set off by the war in Iran and amplified by attacks on Russian refineries and export restrictions in China.

The diesel move could also help farmers who rely on trucks to deliver their goods to market and to receive fertilizer and other supplies.

“For many years, farm vehicles, construction equipment and other off-road vehicles have used what’s known as red-dyed diesel. You know what that is? I don’t know what the hell it is, but whatever it is, it is supposed to be very good,” Trump said, before adding it’s “exactly the same as normal diesel.”

According to a fact sheet released by the White House, the order will “temporarily allow off-road ‘dyed’ diesel for highway use and defer the applicable Federal excise tax, lowering costs for Americans.”

The executive order instructs the Internal Revenue Service to waive penalties on ‘dyed diesel’ for highway use through the end of the year.

The catch is the tax obligations don’t go away completely, they are just deferred until next year. However, the order instructs officials to explore ways to forgive the tax obligations, including potentially legislation.

The order also instructs administration officials to encourage more states to adopt similar policies and to ensure farmers have access to dyed diesel in high-demand areas.

Diesel prices skyrocketed from $3.76 a gallon before the Iran war to a record of $6.53 a gallon on September 22, according to AAA. The national average price for diesel on Tuesday was $6.32 a gallon.

Normally, diesel for on-road use is taxed at 24.4 cents per gallon by the federal government. Diesel also faces state taxes, which average 35.5 cents per gallon, according to federal data.