Trump Signs Order Allowing Tax-Free Diesel on Public Roads
US President Donald Trump on Monday 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 rising pump prices weighed on his Republican Party weeks before the 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 the tax-free red-dyed diesel for any reason.
He admitted he was unfamiliar with the fuel, joking that he did not know what it was but that it was supposed to be very good.
Red-dyed diesel is essentially the same as standard diesel but 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.
Rather than permanently scrapping the tax, the order instructs the Treasury Secretary to defer the tax owed on dyed diesel used on roads until the end of the year, without interest or penalties, and to look for ways to cancel the charges altogether. Federal authorities and state governors could also use their discretion to halt inspections and waive the tax liability.
Diesel prices in the United States have hit record highs above $6 a gallon in recent weeks. Trump also praised a deal with Europe to release 100 million barrels of refined diesel from strategic reserves over the next four months as part of efforts to ease the pressure on fuel costs.
Photo credit: Puncb Newspaper





