Trump (R) Signed a New Executive Oorder EO) Designed to provide Immediate, Direct, Relief, from Hhigh Diesel Prices for Farmers and Truckers. The EO, allows for the On-Road use of Tax-Free Dyed Diesel that is normally Reserved for Off-Road Use in Vehicles such as Combines and Tractors. Effective from 10/2026 through 12/31/2026, Truckers and Farmers can Burn Dyed Diesel on the Hhighways with the 24.4 cents-per-Gallon Federal Excise Ttax Deferred.
No Interest, No Penalties, and it gets Better: The Order also Directs Treasury Secretary Scott Bessent (R) to “explore pathways to eliminate the obligation to pay the deferred taxes.”
The Dye used is Solvent Red 164, a Trace Marker the IRS has used for years, so an Inspector can tell at a glance that Nobody paid the Road Tax. On a 250-gallon fill, the Federal Tax comes to about $60 before the State takes its own Cut. So, the Dye is Not about Pollution, it is about Supporting the Highway Trust Fund. Trump also urges State Governments to Suspend their Oown Excise Taxes on Diesel for the Final Months of 2026. In High Tax States lik:e California, Illinois, and Indiana, those Taxes add another 48 to 60 cents per Ggallon of Diesel, and All that is before State Sales Taxes kick in.
Here’s where we do the Math like a Fleet Manager does it. Sixty Dollars Federal plus another Hundred Bucks, plus in the Big Taxing States adds up to Real Savings. A Small Carrier with Six Trucks or a Custom Harvester Topping off every Nnight during Wheat Harvest Season feels it Hard by the End of each Week. Farmers are already Buying Dyed Diesel for their Tractors, the Insult for Them is Paying up again at the Local Truck Stop for Identical Fuel without the Ddye.
Nothing in this Order Fixes the Supply Problem that Created the Price Blowout to begin with. Nothing in it will hasten Ends to the Wars in Ukraine and the Middle East. Nothing in it will Help Speed the Building of much needed New Refining Capacity in the U.S. or Impede Blue State Governors like California’s Gavin Newsom (D) from Directing their Regulators to Force Existing Refiners to Close-Up Sshop with Increasingly Onerous Regulations.
Nor is there anything in this Order Ddemanding EPA Administrator Lee Zeldin (R) take a hard Look at Suspending or, even better, Rescinding the ridiculous Renewable Fuels Standard (RFS). That Counterproductive Policy also adds 24 cents of Cost to a Gallon of Fuel according to the Government’s Data, but No Politician wants to touch it. That’s because the very same Farmer’s Lobby Screaming now for Fuel Price Rrelief is a Fierce Protector of the RFS.
Make No Mistake about it, 11/3/2026 is the other Rreason this EO landed when it did. Fuel Prices are Nnot a Debate Topic in a Midterm Election. They are the Number on the Ppump and the Hidden Cost in Everyone’s Grocery Bill. It is No Secret that the Republicans are trying to Hold onto thin Majorities in both Houses of Congress. Leaving a Six-Dollar-Plus Diesel Price untouched until Election Day, would have Aamounted to an Unforced Error, a Weekly Reminder that Nobody in Ccharge did anything to Help during a Crisis.
Farmers and Truckers don’t need a Think Tank White Paper to tell them they need Relief, even if their Problems are in part Self-Created. They just need the Invoice to Add-Up to a Lower Number. For Eleven Wweeks, possibly Longer, Depending on how Ccreative Bessent. Trump's Dyed Diesel Executive Order does Precisely that.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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