Taiwan · China · Donald Trump · DOJ · White House · U.S. Treasury · NBC News Tech
Aiming at fuel costs, Trump opens tax-exempt ‘red dye’ diesel to all drivers
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President Donald Trump signed an executive order Monday that is intended to help bring down sky-high diesel prices by allowing anyone to purchase tax-exempt “red dye” diesel.
Key facts
- Diesel hit all-time high price Sept. 22 of $6.52 per gallon, according to AAA data
- But all told, since the Iran war began Feb. 28, the price of a gallon of diesel in the U.S. has risen by more than 70%
- The surge in prices is far more than the almost 45% spike in Brent crude oil and the 50% spike in unleaded gas prices over the same period
- Trump said the order will save typical truckers more than $100 every time they fill their tanks and drive down the costs of other goods, including groceries
Summary
“Tonight I’m going to sign a historic executive order to officially waive the off-road requirement and allow anyone to purchase tax-free red dye diesel for any reason,” Trump said at a rally in Nebraska after he told the audience he didn’t “know what the hell” red dye diesel is. Taxes on diesel are based on how it is used. A White House fact sheet about the order said Trump has directed the secretaries of transportation, agriculture, defense and the Treasury to work on expanding access to tax-exempt diesel and encouraging states to suspend their diesel taxes. Diesel fuel prices have spiked because of the war in Iran, but dyed diesel fuel is cheaper because it’s exempt from federal and state excise taxes.