Trump Allows All Americans to Purchase Tax-Free Diesel

President Donald Trump signed an executive order on Monday evening allowing all American citizens to use red-dyed diesel, a tax-exempt fuel typically reserved for agricultural machinery and other equipment used off public roads.

This move comes as high fuel prices linked to the war with Iran cast a shadow over the Republican Party weeks before midterm elections.

In a speech at a rally in Nebraska before his supporters, Trump said the decision "will officially eliminate the requirement for off-road use and allow anyone to purchase tax-exempt red-dyed diesel for any purpose."

The U.S. President admitted he did not know much about this fuel and joked, "I don't know what it is (...) but whatever it is, it must be very good."

Red-dyed diesel is the same fuel used in regular diesel but is exempt from highway fuel taxes.

A fact sheet issued by the White House coinciding with Trump's signing of the executive order attributed the price increase to the Russia-Ukraine war and a global shortage in refining capacity, without mentioning Iran.

It also accused Democrat-led states of closing refineries in the name of green energy policies.

Diesel prices in the United States recorded record levels exceeding $6 per gallon in recent weeks amid export restrictions imposed by Russia, a major supplier, following Ukrainian attacks targeting its oil facilities, which increased pressure on global markets.