From Straight Arrow · · 1m 20s
Trump Waiver Lets Farm Diesel Run on Streets
Trump's executive order lets farm diesel run on public roads tax-free, but will it lower costs for farmers?
In brief
Trump's executive order lets farm diesel run on public roads tax-free, but will it lower costs for farmers? Trump's executive order allows dyed diesel to be used on public roads tax-free, but experts say it won't significantly help typical farmers with fuel costs. Originally reported by Straight Arrow.
Trump's Executive Order
President Donald Trump signed an executive order allowing off-road diesel to be used on American highways tax-free.
Dyed Diesel Rules
The red-dyed diesel, typically used in construction and agriculture, avoids federal taxes and helps law enforcement identify vehicles.
Diesel Price Surge
Diesel prices hit $6.50 per gallon in September, driven by higher oil prices and refinery capacity shortages.
Farmers' Reaction
Farm Bureau Federation President Zippy Duvall said every cent per gallon matters for grain trucks and cattle hauling.
Expert Caution
Kansas State University professor Gregory Ibendahl said the policy won't help typical farmers much, as they spend more on fertilizer and machinery.
State Rules Vary
About 10 states eased dyed diesel rules, but a patchwork of rules means trucking faces fines across state lines.
Price Outlook
Most oil executives expect market instability to last beyond spring 2027, with diesel prices staying high for years.
What matters most
Trump's executive order allows dyed diesel to be used on public roads tax-free, but experts say it won't significantly help typical farmers with fuel costs.
