President Trump signed an executive order allowing tax-free red-dyed diesel, typically reserved for farm use, to be used in nonfarm vehicles. The move aims to ease fuel costs as diesel prices surpassed $6.30 a gallon nationwide. The order defers federal road taxes on diesel through year-end and encourages states to eliminate taxes on dyed fuel.
This follows actions by nearly a dozen governors in the Midwest and South permitting dyed diesel in road vehicles. Dyed diesel is chemically identical to regular diesel but contains red dye for tracking and is exempt from the 24.4-cent-per-gallon federal highway tax. Farmers, facing high prices and tariff impacts, are a key voter bloc ahead of midterms.
In Nebraska, Senator Pete Ricketts faces a tight race against Dan Osborn. Gov. Kelly Armstrong of North Dakota allowed dyed diesel for agricultural vehicles, saving 19 cents per gallon.
While farmers may benefit temporarily, diesel is only 2.6% of farm expenses, and experts like Gregory Ibendahl of Kansas State University question the overall impact. Groups also seek a ban on diesel exports, and the G7 pledged to release 100 million barrels of oil reserves.
Source: New York Times Top Stories · Summarized by HeadlinesBriefing