Red Diesel on the Highway: A Smart, Temporary Break for the People Who Haul and Grow America's Goods
President Trump's order aims to let anyone use tax-free red-dye diesel on the highway for the rest of the year. In our view, it is real relief for truckers and farmers, but a tax holiday cannot refine one more barrel.
By Clara Hughes
ALTAS WORLD NEWS OPINION | By Clara Hughes, Chief Opinion Editor | October 6, 2026 | 6-min read The diesel in a farmer's tractor and the diesel in a trucker's rig come out of the same refinery. President Trump calls red-dye diesel "exactly the same as normal diesel"; what sets them apart is a dash of red dye and the taxes, starting with a 24.4-cent federal levy [3][4]. On Monday night, President Trump told Washington to stop policing that difference for the rest of the year. "Tonight, I am going to sign a historic Executive Order to officially waive the off-road requirement and allow anyone to purchase tax-free red dye diesel for any reason," he said in Nebraska [3]. In our view, it is a smart emergency step for the people who haul and grow America's goods. It is a bridge, though, and Congress and the refiners still have to build the road on the other side. Key Takeaways The Oct. 5 order gives Treasury five days to decide whether the law allows relief. If it does, Treasury is to defer the federal tax on highway use of dyed diesel from Oct. 5 through Dec. 31, 2026, "without any penalties, interest," and the IRS is to announce it will not impose the usual penalties [1]. The White House puts the federal saving at "about $60 on a 250-gallon fill." It says savings "will top $100 per fill" only where states match the federal action [3]. U.S. diesel averaged $6.382 a gallon in the week of Sept.