Truck stops across the country have been told to proceed with caution after President Donald Trump signed an executive order intended to lower diesel prices by allowing the highway use of “red dye” diesel, NBC News reports.
This fuel is traditionally reserved for farm equipment and off-road vehicles because it is exempt from federal excise taxes. While the administration is pushing this move to help truckers save money, industry groups are warning that the reality of the situation is much more complicated than a simple discount at the pump.
The executive order was signed on Monday night during a visit to Nebraska, where President Trump aimed to address the frustration voters feel regarding high fuel costs. The directive instructs Treasury Secretary Scott Bessent to defer certain tax payment obligations and provide penalty relief where the law allows. It is important to note that this does not actually eliminate the federal tax, as only Congress has the authority to do that. The order is essentially a temporary measure meant to provide some breathing room before the November 3 midterm elections.
The Energy Marketers of America issued a clear warning following the announcement
The group stated that whether relief is available, whom it covers, and on what conditions depend on Treasury determinations and guidance not yet issued. They reminded its members, “Deferral is not forgiveness.” They also pointed out that the order fails to resolve existing EPA or state restrictions on using dyed diesel for highway travel, which creates a significant legal gray area for retailers.
Other major organizations, including the Society of Independent Gasoline Marketers of America and the National Association of Truck Stop Owners, echoed these concerns in a note to their members. They noted that the tax is still legally owed, meaning there is very limited financial upside for businesses.
Furthermore, they highlighted that the logistical challenges are massive, as residual dye lingers in tanks and fuel systems for a long time. These groups concluded that for most fuel sellers, the liability and customer risk outweigh any temporary, uncertain benefit.
Despite these warnings, the White House maintains that the plan will be effective. White House spokeswoman Taylor Rogers stated, “President Trump’s executive action will quickly cut diesel costs and put money directly back into the pockets of American truckers, saving them over $100 every time they refill at the gas pump.”
Rogers added that Transportation Secretary Sean Duffy will coordinate with states, industry leadership, and labor organizations to ensure access to the fuel. A White House official also told NBC News that the IRS would announce its determination soon regarding the enforcement of the deferred tax.
The necessity for such measures stems from a sharp rise in diesel costs, which have climbed from $3.76 per gallon to $6.32 as of Tuesday. This nearly 70% increase is driven by several factors, including the war with Iran and the ongoing conflict between Ukraine and Russia. Recent Ukrainian drone strikes on Russian refineries have forced Russia to ban diesel exports through at least the end of October.
President Trump has publicly urged Ukrainian President Volodymyr Zelenskyy to stop these strikes, telling reporters in early September, “Mr. Zelenskyy has to do one thing. He has to stop knocking out diesel fuel in Russia.” He further explained, “There are plenty of other targets. Don’t hit diesel fuel, because that’s hurting the world.”
Even with these efforts, some industry voices remain skeptical. Todd Spencer, president of the Owner-Operator Independent Drivers Association, argued that the move provides minimal relief. He emphasized that market stability is essential to bring down costs for the long haul.
With Brent crude oil trading above $101 per barrel on Tuesday night, it is clear that the pressure on the fuel supply chain remains intense.
Published: Oct 7, 2026 06:41 pm