President Donald Trump has issued an executive order allowing anyone to purchase tax-exempt dyed diesel for highway use in an effort to bring down soaring fuel prices driven by the wars in Iran and Ukraine, fox4news.com reported.
Government Waives Federal Excise Tax on Fuel
The executive order waives the federal excise tax through the end of the year without interest or penalties, according to a White House fact sheet. President Trump announced the measure during remarks in Grand Island, Nebraska, telling crowds that truckers would soon see significant relief at the pump. The White House estimates that commercial drivers could save more than $100 per refill under the temporary waiver.
Global diesel supplies have faced severe restrictions due to limited refining capacity, exacerbated by the Russia-Ukraine war and refinery closures in Democrat-led states that the administration has linked to green energy policies. To complement the tax relief, the White House stated that Trump negotiated an agreement with Europe to release 100 million barrels of refined diesel from strategic reserves over a four-month period.
The federal action mirrors a statewide disaster proclamation issued by Texas Gov. Greg Abbott. However, the new presidential order elevates the policy to a nationwide level while directing the Treasury Department to explore eliminating the deferred tax bill entirely in consultation with the secretary of war.
Logistical Hurdles and Skepticism Among Truckers
Despite the potential savings, commercial operators remain cautious about the practical implementation of the order. Joel Rifkin, owner of Run Amok Transportation based in North Texas, told fox4news.com that his drivers are spending up to $3,000 per day per truck hauling specialized livestock. Rifkin expressed doubt that the order would provide immediate relief due to severe supply chain disconnects.
“For somebody like me, it’s not really going to change anything. Because where can I take a tractor trailer and get off road diesel?” Rifkin said. “It’s not like your mainline truck stops are going to support, start supplying off-road diesel.”
While regional operators can find off-road diesel at select locations such as Buc-ee’s in Texas, major national highway truck stop chains—including Love’s, Pilot Flying J, TA, and QuikTrip—generally do not stock the fuel. Diesel fuel types differ in coloring, with off-road diesel containing a red dye and standard highway diesel using green dye.
Truckers worry about long-term penalties and roadside inspections because the red dye lingers in fuel tanks, lines, and filters long after the temporary order expires. Under standard federal motor carrier regulations, discovering red dye in an over-the-road truck’s fuel system typically results in the vehicle being taken out of service.
“So, I don’t know what the long-term implication is because the dye stays in your tanks and lines for quite a while. So, I don’t know how the federal motor carriers will end up doing that long term,” Rifkin told fox4news.com.
Operational Challenges in Specialized Freight
Hauling specialized loads adds another layer of complexity for transport companies trying to mitigate fuel expenses. While freight, hay, and grain operators on the West Coast can conserve fuel by slowing their vehicles down by a few miles per hour to gain an extra half-mile or full mile per gallon, livestock haulers do not have that luxury.
“Unfortunately, hauling livestock, backing it down and trying to slow down for fuel savings is a really hard pitch to our customers when their animals are on the trailer for a couple, three hours longer than they need to be,” Rifkin said.
Beyond the diesel waiver, the administration has implemented additional measures to ease transportation costs, including a Department of Transportation waiver allowing truck drivers who haul gasoline and diesel to log additional driving hours. The White House also directed the Transportation Department to coordinate with states, industry leaders, and labor organizations, while the Agriculture Department works to ensure adequate supplies for farmers in high-demand areas.
