Trump lets truckers use red diesel on highways and defers fuel tax

Key Points:

• President Donald Trump signed an executive order allowing truckers to use red-dyed off-road diesel fuel on highways temporarily, deferring the federal excise tax through the end of the year without penalties or interest.
• The administration estimates this move could save truckers more than $100 per refill, aiming to reduce fuel costs amid restricted global diesel supplies and limited refining capacity.
• The order directs coordination between the Transportation and Agriculture Departments to ensure fuel access for truckers and farmers, while encouraging states to adopt aligned tax relief policies.
• Trump criticized former President Joe Biden, claiming he is doing what Biden "couldn’t do," and highlighted additional administration efforts, including a waiver allowing longer driving hours for fuel haulers and a deal with Europe to release 100 million barrels of refined diesel.
• The executive order aims to address fuel supply challenges exacerbated by the Russia-Ukraine war and refinery closures in Democrat-led states attributed to green energy policies.