Trump signs executive order temporarily easing red-dyed diesel limits
FILE - U.S. President Donald Trump signs an executive order to lower the cost of diesel fuel during a campaign rally at Pinnacle Bank Expo Center on the Nebraska State Fairgrounds on Oct. 05, 2026 in Grand Island, Nebraska. (Photo by Win McNamee/Get
President Donald Trump on Monday signed an executive order to ease limits on the tax-free use of red-dyed diesel.
The president claimed this decision would save "millions" for farmers and drive down the cost of all goods.
Diesel fuel prices skyrocket
Dig deeper:
Diesel fuel prices have spiked in the aftermath of the Iran war.
Diesel fuel that is intended for off-road uses such as agriculture is exempt from federal and state excise taxes, and it is dyed for law enforcement purposes, the White House explained in a fact sheet.
Temporarily removing the limits would reduce cost pressures on the businesses that rely on diesel.
What they're saying:
"The typical trucker will save more than $100 every time they fill up," Trump said, signing the executive order onstage before a crowd in Grand Island, Nebraska, located in the solidly conservative south-central part of the state. "Farmers will also save millions and millions of dollars, and this order will also drive down the cost of all goods and to go to grocery prices very substantially."
Admitting his unfamiliarity with the topic, Trump was blunt: "I don't know what the hell it is," he said of the fuel. "But whatever it is, it’s supposed to be very good."
G7 releases 100 million barrels of oil and diesel
Big picture view:
The G7 nations announced last week they plan to release 100 million barrels of oil and diesel fuel amid skyrocketing prices.
To start, a "substantial" amount of diesel will be released "immediately" in the next 20 days.
The rest will be released over a span of four months.
The Source: Information for this article was taken from reporting by The Associated Press, an executive order signed by President Donald Trump on Oct. 5, 2026, and reporting by FOX News. Previous reporting by LiveNOW from FOX also contributed.