Daniel Wolfram
Trump’s new executive order meets staunch criticism from the industry.
President Donald Trump announced late Monday to a crowd in Nebraska that he had just signed a new executive order to lower fuel costs that have reached new heights.
The plan relies on a product known as red-dyed diesel. This fuel is identical to standard diesel, but it is dyed to indicate it is meant exclusively for tractors and off-road vehicles.
Trump admitted his lack of familiarity with the fuel. He even asked if somebody would join him on stage to explain what he had just read off the teleprompter.
“For many years, farm vehicles, construction equipment and other off-road vehicles have used what’s known as red-dyed diesel. You know what that is? I don’t know what the hell it is, but whatever it is, it is supposed to be very good,” he told the crowd with a confused look on his face.
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Temporary tax relief
The directive instructs the Internal Revenue Service (IRS) to pause penalties for highway use. Drivers can defer their federal tax obligations until the following year. However, this is not a tax-free incentive as the bill will come next year instead.
Prices at the pump have soared due to global conflicts in Ukraine and the Middle East. According to CNN, the American Automobile Association reported that diesel jumped from $3.76 a gallon before the war in Iran to $6.53 in September. The national average sits near $6.32 today.
Some regional governments are already taking action independently. Ten states have recently expanded access to dyed diesel for highway vehicles, according to researchers at ClearView Energy Partners.
Criticism from truckers
Some truckers view the move as a temporary measure rather than a genuine solution to the problem. John Tirado, a trucking company operator, was distinctly critical. “It’s a Band-Aid,” he said.
Patrick De Haan from GasBuddy, a fuel-savings and price-tracking platform in North America, echoed those doubts. “Washington is great at making something sound easy that is not. Just because you’re allowing something to happen, doesn’t mean it will,” he said.
Andy Lipow from Lipow Oil Associates pointed to the ongoing military conflict in Europe. “The only way to bring Moscow to the table is to destroy the Russian refinery system,” he argued.
