Trump signs order letting anyone buy tax-free red diesel fuel
US President Donald Trump has signed an executive order allowing anyone to buy untaxed red-dyed diesel fuel, previously reserved for farm and off-road equipment. The move comes as fuel prices linked to the Iran war pose a political risk to Republicans ahead of November's midterm elections.
US President Donald Trump signed an executive order on Monday removing restrictions on purchasing red-dyed diesel fuel. The fuel is essentially identical to standard diesel but had previously been exempt from highway fuel taxes only when used in farm equipment and other off-road machinery.
A politically sensitive moment
Trump signed the order as fuel prices tied to the Iran war begin creating political risks for his party ahead of the congressional midterm elections in early November. Speaking to supporters at a rally in Nebraska, the president explained that the order "officially eliminates the off-road requirement and allows anyone to buy tax-free red diesel for any reason."
President admits unfamiliarity
Discussing the fuel itself, Trump openly acknowledged he had no personal experience with it. Joking with the crowd, he said he didn't know exactly what it was, but whatever it was, it must be very good.
The new order removes the previous restriction that limited red diesel use to specific sectors. Now any consumer will be able to purchase it regardless of its intended use, effectively creating a way to avoid the highway fuel tax.
