Trump signed an executive order to lower diesel prices

U.S. President Donald Trump signed an executive order on October 5 aimed at lowering the nearly record-high prices of diesel fuel in the country by lifting restrictions on cheaper, red-dyed diesel fuel. UNN reports this, citing CNN.

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Speaking at a campaign event in Nebraska, a state that has been severely affected by the sharp rise in diesel fuel prices, Trump said that the executive order "will allow any person to purchase red-dyed diesel fuel without paying taxes for any reason."

"This executive order will also lower the cost of all goods, including food," Trump said after signing the document.

Red-dyed diesel fuel is the same as regular diesel fuel. It is simply not taxed and is dyed red to distinguish it from regular diesel, and is intended only for off-road use, for example, in tractors or for industrial purposes.

Allowing widespread use of tax-exempt diesel fuel could be especially beneficial for truck drivers facing a historic surge in diesel fuel prices, which, the publication writes, were "caused by the war with Iran, intensified attacks on Russian oil refineries, and export restrictions in China."

Allowing the use of diesel fuel could help farmers who depend on trucks to deliver their produce to market, as well as to obtain fertilizer and other materials.

According to a fact sheet published by the White House, the executive order "will temporarily allow the use of dyed diesel fuel for off-road equipment on highways and defer payment of the applicable federal excise tax, reducing costs for Americans."

The fact sheet states that the executive order directs the Secretary of the Treasury, in consultation with the Secretary of Defense, to defer payment for the use of dyed diesel fuel on roads until the end of the year without interest or penalties and to "explore ways to waive the obligation to pay the deferred taxes."

The White House added that the executive order directs administration officials to encourage similar measures in other states and to ensure that farmers have access to dyed diesel fuel in areas with high demand.

According to AAA, diesel fuel prices in the United States rose sharply from $3.76 per gallon (approximately $0.99 per liter) before the war with Iran to a record $6.53 per gallon (approximately $1.73 per liter) on September 22. The national average price of diesel fuel on Monday, October 5, was $6.32 per gallon (approximately $1.67 per liter).

Diesel fuel for road use is usually subject to a federal tax of 24.4 cents per gallon (approximately 6.45 cents per liter). In addition, diesel fuel is subject to state-level taxes, which, according to federal data, average 35.5 cents per gallon (approximately 9.38 cents per liter).

It is unclear how long the executive order on the diesel fuel tax will remain in effect.

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