Trump signs historic ‘tax-free’ order for all Americans as fuel costs soar – potential savings of more than $100 per fill-up
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For Americans watching the cost of keeping a vehicle on the road climb, putting money back in their pockets can start with a familiar expense: filling up their tanks.
President Donald Trump’s latest executive order aims to provide relief on that front — with potential savings of more than $100 per fill-up for some drivers, according to the White House.
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“They’re going to be very happy in about two seconds,” Trump said in Nebraska on October 5, before announcing the decision.
The president then signed an executive order to expand highway access to red-tinted diesel, a fuel normally reserved for off-road uses such as agriculture and construction. The order directs temporary federal tax relief through the end of 2026.
Trump said the measure would “allow anyone to purchase red dye diesel tax-free for any reason.”
This is a significant change for a fuel whose color traditionally serves as a warning to highway users. Red dyed diesel is essentially the same fuel as standard diesel, but the dye identifies it as being intended for uses exempt from road fuel taxes. Its use on public roads generally exposes drivers to penalties and back taxes.
The announcement comes as diesel users face severe pressure. The national average price of diesel hit a record high of $6.53 per gallon (2) on September 22, before declining to $6.28 as of this writing. This still leaves a hefty bill for businesses and households that rely on fuel.
For truckers with large tanks, even a modest reduction per gallon can add up quickly. The federal tax on diesel is 24.4 cents per gallon. For a 250-gallon fill, that works out to about $61. When states provide equivalent aid, the White House says (3) savings could exceed $100 per fill-up.
Take a little pain out of every fill-up
Of course, whether or not you benefit from Trump’s executive order depends on what you drive. This is a relief for the diesel; it doesn’t offer the same tax break on gasoline. And the $100-plus figure is for filling up a large truck with matching state assistance, rather than a typical visit to the pump in a passenger car.
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