Trump Signs Orders to Expand Access to Tax-Exempt Diesel

President Donald Trump announced and signed orders at a Nebraska rally on Monday, October 5, to expand access to tax-exempt red-dyed diesel, seeking to ease costs for users including farmers and construction businesses as diesel prices remain high. The orders make more of the fuel available, according to accounts of the event, while further tax measures described in reports have not been fully specified. Red-dyed diesel is exempt from certain taxes and is generally used in agriculture, construction and other sectors. The expansion could allow more users to obtain the fuel, though the available details do not establish which states will change their rules or how many additional users will qualify. Ten states, representing about a third of U.S. diesel sales, had already expanded access by Friday, according to reporting on the administration’s plans. The announced orders came as farmers and ranchers faced elevated fuel costs during harvest season. The average U.S. diesel price was reported at $6.32 per gallon on Monday, based on an AAA figure cited in accounts of the announcement. That figure was described as significantly above the level a year earlier in one report.