A recently signed executive order officially waives the off-road requirement for red-dye diesel. This allows anyone to purchase fuel tax-free to reduce costs.
President Donald Trump is giving truckers a new way to combat pain at the pump, signing an executive order that temporarily allows them to fill up with red-tinted diesel, normally banned for use on highways.
“They’re going to be very happy in about two seconds,” Trump said during a speech in Grand Island, Nebraska, before announcing relief.
The order allows off-road diesel on highways and defers the federal excise tax until the end of the year without interest or penalties, according to the White House.
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A fuel pump at a Love’s gas station in Loxley, Alabama, Thursday, September 3, 2026. (Micah Green/Bloomberg/Getty Images / Getty Images)
The administration estimates that truckers could save more than $100 per charge.
“So, tonight, I will sign a historic executive order to officially waive the off-road driving requirement and allow anyone to purchase red-dye diesel tax-free for any reason,” Trump said.
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Trump called the fuel “tax-free,” but the order defers payment of the federal tax while directing Treasury officials to consider eliminating the deferred bill.
The Secretary of the Treasury will implement this directive in consultation with the Secretary of War, according to the White House fact sheet.
Red-dyed diesel typically powers agricultural equipment and construction machinery. Its color helps authorities identify highway use without paying applicable taxes.
This temporary change makes this fuel available for use on highways as the administration seeks to reduce costs for truckers, farmers and workers.
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The White House cited limited global diesel reserves and limited refining capacity as reasons for the decision, pointing to the war between Russia and Ukraine and blaming refinery closures in Democratic-led states on green energy policies.
The ordinance also addresses access to fuel. It tasks the Department of Transportation with coordinating with states, industry leaders and labor organizations, while the Department of Agriculture is responsible for ensuring supplies to farmers in high-demand areas.
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State tax relief would require corresponding action. The order directs White House intergovernmental affairs officials to encourage more states to adopt policies aligned with the Treasury measures.
Trump also used the signature to attack former President Joe Biden.
“I’m going to do what Joe Biden couldn’t do,” Trump said. “Sign his signature.”
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The diesel order follows other measures the administration says are aimed at reducing fuel costs, including a Department of Transportation waiver allowing truck drivers hauling gasoline and diesel to drive overtime.
The White House also said Trump negotiated a deal with Europe this month to release 100 million barrels of refined diesel from strategic reserves over the next four months, aiming to increase supply alongside the temporary tax break.
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