President Trump signed an executive order late Monday aimed at cutting diesel fuel costs, using the stage of his Grand Island, Nebraska rally as the backdrop. A White House aide carried the order out to him, and he signed it live in front of the crowd.
The order opens the door to using tax-free red-dyed diesel — normally restricted to off-road farm and construction use — on highways for any purpose, and defers the 24.4-cent-per-gallon federal diesel excise tax through Dec. 31, 2026, with no interest or penalties. It also directs the Treasury Department to explore wiping out the deferred obligation permanently.
Trump told the rally the move would save truckers roughly $100 per fill-up and 'drive down the costs of all goods, including groceries.' Diesel prices hit a record $6.53 a gallon in September, driven by the Iran war, attacks on Russian refineries and Chinese export curbs.
Bloomberg noted the timing lands about a month before the midterm elections. Energy analysts were skeptical, arguing the tax relief is unlikely to move fuel prices meaningfully on its own — though the symbolism, at a rally in farm country, was the point.
