Trump’s Dyed Diesel Order Provides Common Sense Relief, For Now
President Donald Trump signed a new executive order on Monday designed to provide immediate, direct relief from high diesel prices for farmers and truckers. The order 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 Oct. 5 through Dec. 31, truckers and farmers can burn dyed diesel on the highways with the 24.4 cents-per-gallon federal excise tax deferred. No interest, no penalties.
And it gets better: The order also directs Treasury Secretary Scott Bessent to “explore pathways to eliminate the obligation to pay the deferred taxes.” As the Iranian regime has found out the hard way in recent months, Secretary Bessent has proved to be extremely creative when it comes to exercising his discretion.
Many believe dyed diesel is a different product from on-road diesel, but this is a myth. The products are chemically the same, have the same emissions profile, and provide the same mileage when used in transportation. The dye used is Solvent Red 164, a trace marker the IRS has used for........
