Oct. 5 (UPI) — President Donald Trump on Monday night signed an executive order temporarily easing restrictions on red-dyed “off-road” diesel, directing that it be made available for highway use and that its federal excise tax be deferred as he attempts to lower surging diesel prices.
The order directs the secretaries of the Treasury, Transportation and Agriculture to expand access to dyed diesel, which is regular diesel fuel dyed red to indicate it is exempt from federal highway fuel taxes and is generally restricted to off-road uses, such as farming, construction equipment and heating, from Monday through Dec. 31.
It also directs the Treasury to defer the federal excise tax that would normally become due when dyed diesel is used in highway vehicles and to explore ways to eliminate the obligation to pay the tax when due. The repayment date was not stated.
A White House fact sheet claims that American truckers will save more than $100 per tank.