President Trump postpones tax on dyed diesel fuel — Motor1
In the United States, President Donald Trump on October 5, 2026, signed an order allowing freight carriers, farmers and other eligible road transport users to temporarily use dyed diesel fuel with a deferral of the federal highway tax. The decision will be in effect from October 5 through December 31, 2026, Motor1 reports.
Fuel use conditions
Red-dyed diesel fuel was traditionally intended for tractors, generators, construction equipment and other machinery that does not travel on public roads. It was sold without the federal highway tax.
The new order temporarily eases this restriction for vehicles on highways. At the same time, eligibility for such use will not be automatic for all drivers: the U.S. Department of the Treasury and the Internal Revenue Service must determine requirements for participants and documentation rules.
The order also instructs the Treasury Department to consider the possibility of fully canceling the deferred tax liability.
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Potential savings
The federal diesel highway excise tax is 24.4 cents per gallon. According to the publication's estimate, deferring this federal component could amount to approximately $50–$60 for the owner of a large truck during a substantial refueling. For a truck tractor with a 250-gallon tank, a full fill-up at the beginning of October cost about $1,300.
The White House stated that potential savings could reach up to $100 per fill-up. According to Motor1, such a level is possible in the case of a very large volume of fuel covered by the federal tax deferral.
Trump also stated that lower diesel costs could reduce the cost of transporting goods, including food products. Within five days of signing the order, the Internal Revenue Service must explain how it will avoid penalties for sellers and drivers who sell or use dyed fuel on roads during this period.
