Trump Temporarily Expands Access to Tax-Free Red-Dyed Diesel. Will It Lower Costs?
Updated on: October 6, 2026 / 2:13 PM EDT / CBS News
TL;DR
- President Trump issued an executive order allowing red-dyed diesel, intended for off-road use, to be used on highways.
- The goal is to lower costs for truckers and farmers experiencing high diesel prices.
- Red-dyed diesel is exempt from the federal tax of 24.4 cents per gallon.
- Experts are skeptical about widespread savings, citing potential issues like state bans on its use and the possibility of future tax liabilities.
- The executive order does not address the fundamental issue of low diesel supply, which experts identify as a key reason for high prices.