U.S. President Donald Trump on Oct. 5 ordered expanded access to the tax-exempt, dyed diesel fuel typically used to power heavy agricultural and construction equipment operated off public roads.
At a campaign rally in Grand Island, Nebraska, the president directed U.S. Agriculture Secretary Brooke Rollins to "ensure farmers' access to dyed diesel in high-demand areas." Trump also instructed Transportation Secretary Sean Duffy to work with states, labor organizations and fuel distributors to increase access to dyed diesel, which is typically colored red.
Trump’s order temporarily waives tax penalties on using dyed diesel on public highways, which normally start at a minimum of $1,000, until Dec. 31. Under the president’s directive, the Internal Revenue Service will also waive through Dec. 31 the 24.4-cent-per-gallon federal excise tax charged on purchases of on-highway diesel fuel, which is undyed.
The average U.S. price Oct. 5 for a gallon of on-highway diesel fuel was $6.32, down from a record-high $6.53 on Sept. 21. Global oil market disruptions caused by the Russia-Ukraine and U.S.-Iran conflicts and low domestic inventories have led to a near doubling of diesel fuel prices along U.S. highways.
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