Trump Expands Access to Tax-Exempt Dyed Diesel to Try to Lower Fuel Costs

TIME by Miranda Jeyaretnam

Oct 6, 2026

President Donald Trump will allow road vehicles to use untaxed diesel typically used in farm operations as part of an effort to ease rising fuel costs.

Trump signed an executive order on Monday to temporarily allow anyone to pump so-called red-dyed diesel, which is normally not allowed in road vehicles.

“For many years, farm vehicles, construction equipment and other off-road vehicles have used what’s known as red-dyed diesel. You know what that is? I don’t know what the hell it is, but whatever it is, it is supposed to be very good,” Trump said at a campaign rally in Grand Island, Neb., in support of Republican Sen. Pete Ricketts. The order would “officially waive the off-road requirement and allow anyone to purchase tax-free, red-dyed diesel for any reason,” he said.

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