President Donald Trump signed an executive order on Monday allowing all drivers to use tax-exempt red-dye diesel on public roads, a move he said would cut fuel costs for truckers, farmers and ordinary consumers. He inked the order live on stage midway through a midterm election rally at the Pinnacle Bank Expo Center in Grand Island, Nebraska, handing the document to a cheering crowd.
What the order changes
Red-dye diesel is chemically identical to regular diesel but is dyed red to mark its tax-exempt status. Until now, it was reserved for off-road equipment such as tractors and construction machinery, and its use on public highways was banned. Trump’s order waives the off-road requirement, opening the cheaper fuel to anyone, for any reason.
The president said the average trucker would save more than $100 per fill-up and that farmers would save “millions and millions of dollars.” He argued the move would push down the cost of everything transported by highway, including groceries, calling the order an “unprecedented step to bring down costs.”
A response to record fuel prices
The order lands as diesel prices in the United States remain near historic highs. The fuel hit an all-time record of $6.52 per gallon last month, according to AAA, and stood at $6.32 on Monday, far above the $3.70 average a year ago. Because heavy trucks run almost entirely on diesel, the fuel’s price feeds directly into transportation costs and, ultimately, into the price of consumer goods.
The order is part of a broader push by the administration to bring down energy costs before the November midterm elections. Last week, Trump secured the release of up to 100 million barrels of diesel oil from European reserves to ease supply pressure. Addressing Senator Pete Ricketts and Governor Jim Pillen, both facing re-election, the president said the order “should absolutely ensure your election.”
Trump added that the relief may be temporary: “We’re not going to need it long,” he said, predicting prices would “plummet” once the war in Iran ends, which he has said would happen “very soon” after the midterms.
Source: New York Post