Fuel industry warns against red dye diesel after Trump order

Key Points:

• President Donald Trump signed an executive order temporarily allowing the use of tax-exempt red dye diesel fuel on highways to help reduce fuel prices ahead of the midterm elections, though federal excise taxes are not waived.
• The Energy Marketers of America and other industry groups cautioned truck stops and fuel sellers to proceed carefully, noting that tax deferral is not forgiveness and that EPA and state restrictions on red dye diesel remain in place.
• Industry experts highlighted logistical challenges and potential liabilities with using red dye diesel for highway use, suggesting limited benefits and little incentive for reputable fuel retailers to adopt the practice.
• Diesel prices have surged nearly 70% since the start of the Iran conflict, exacerbated by the Ukraine-Russia war and Russia’s diesel export ban, while Brent crude oil prices have risen over 66% since the beginning of the year.
• Trump has publicly urged Ukrainian President Zelenskyy to stop attacks on Russian diesel infrastructure, arguing such strikes worsen global fuel supply and prices.