Trump signs order to expand access to tax-free diesel fuel

Executive action in Nebraska

The president addressed Republican officials including Senator Pete Ricketts and Governor Jim Pillen during the signing. He stated that the move would save millions of dollars for farmers and lower costs for goods.

Reasons for the change

Diesel prices have risen sharply following conflicts involving Iran and Ukraine, which rattled voters and pressured Republican candidates. The White House explained that red-dyed diesel is normally exempt from taxes but only for off-road uses like agriculture.

Details on tax relief

The directive tells the treasury secretary to defer federal excise tax payments for on-road use of this fuel for the rest of the year. It also asks the transportation secretary to coordinate with states and industry leaders to ensure access in high-demand areas.