President Donald Trump has signed an executive order temporarily expanding access to tax-exempt, red-dyed diesel in an effort to ease soaring fuel costs for farmers and truckers. The order directs the Treasury Department to defer certain federal diesel tax payments through December 31 and provide penalty relief for dyed diesel used on highways during that period. It also directs USDA to help ensure adequate supplies of dyed diesel in high-demand areas and encourage states to take similar action. The federal diesel tax is 24.4 cents per gallon, although state taxes would require separate action. The White House says states matching the federal relief could increase savings. However, energy experts and economists question how much the move will help farmers, warning that infrastructure for distributing red-dyed diesel is limited. Increased demand could also strain supplies and potentially push prices higher for farmers.
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