10/17/2026
President Trump signed an executive order “temporarily” promoting the use of red dye diesel, which is exempt from federal excise taxes and intended only for use in farm equipment and other off-highway vehicles. The order instructs Treasury Secretary Scott Bessent to “defer certain diesel fuel tax payment obligations and to provide penalty relief to the extent permitted by law.”
Now, industry leaders in the oil and gas, and trucking industries, are warning truck stops and truck drivers that buying the tax free fuel now may cost them more in taxes later, reports NBC.
Fuel and transportation industry leaders say that using red dye diesel to save money in the short term may not be worth the risk of being taxed