By: NATHAN STUEDLE
President Trump has signed an executive order temporarily expanding access to tax-exempt red-dyed diesel in an effort to ease high fuel costs for farmers and truckers. The order directs the Treasury Department to defer certain federal diesel tax payments through December 31 and provide penalty relief for dyed diesel used on highways during that period. The federal diesel tax is 24-point-4 cents per gallon, although state fuel taxes would require separate action.
The order also directs USDA to help make sure adequate supplies of dyed diesel are available in areas of high demand and encourages states to consider similar relief. The White House says states matching the federal action could increase savings. Some energy experts caution the benefit may be limited by distribution infrastructure, and stronger demand for dyed diesel could put additional pressure on supplies.