Trump expands access to tax-exempt diesel fuel
USO•President Donald Trump signed an order expanding access to dyed diesel fuel and deferring federal excise taxes on it for on-road use through the end of the year. Diesel prices reached about $6.50 a gallon last month.
1. Order expands diesel access
Trump signed the order from a rally stage in Nebraska. It waives the off-road requirement for tax-free dyed diesel, allowing anyone to buy fuel used by the agriculture industry and some off-road vehicles.
2. Tax payments deferred
The order directs the Treasury secretary, in consultation with the Pentagon chief, to defer federal excise tax payments on dyed diesel used on-road for the rest of the year, without interest or penalties, and to explore eliminating the obligation to pay the deferred taxes. It also directs the agriculture secretary to ensure farmers can access dyed diesel in high-demand areas, and the transportation secretary to coordinate with states, industry and labor groups.
3. Fuel prices and supply
Diesel prices, which reached a record of about $6.50 a gallon last month, have risen amid the US-Israeli war on Iran and Russia’s invasion of Ukraine. Trump said he hoped the waiver would not be needed for long. G7 countries announced plans to release 100 million barrels of diesel, though it was unclear how much would be new supply.
