GRAND ISLAND, Neb. — President Donald Trump signed an executive order MondayGRAND ISLAND, Neb. — In a bid to counter surging energy costs, President Donald Trump signed an executive order on Monday temporarily broadening access to tax-free diesel fuel for the trucking and agricultural sectors. However, industry analysts caution that the measure will likely yield limited relief at the pump.
Speaking at a campaign rally at the Pinnacle Bank Expo Center in Grand Island, Nebraska, Trump announced he was deferring the collection of federal excise taxes on off-road diesel—commonly known as “red dye diesel”—through the end of the year.
Red dye diesel is typically reserved for off-road agricultural and construction equipment and is exempt from federal highway taxes. Trump’s directive aims to temporarily expand access to the untaxed fuel to standard commercial trucking.
During the event, White House aide Natalie Harp brought the order onstage for Trump to sign before he tossed the pen into the cheering crowd. Trump touted the immediate benefits for workers, claiming the directive would save commercial truckers an average of $100 per fill-up while saving farmers millions.
“This order will also drive down the cost of all goods, including groceries, very substantially,” Trump said, arguing that reduced transport costs would ripple across the broader economy. “It’s an honor to do it,” he added, expressing hope that the intervention would not be needed for long.
Despite the administration’s optimistic projections, energy experts questioned the overall impact of the order, noting that broader market forces and structural supply constraints continue to drive prices.
The policy move comes as global fuel prices spike following escalating military conflicts, including the U.S.-Israel war on Iran and Ukrainian strikes on Russian oil refineries. Trump defended his broader energy and foreign policy approach, arguing that fuel costs would stabilize once global conflicts are resolved and framing current price spikes as “a small price to pay” to curb Iran’s nuclear ambitions.
Trump was in Nebraska campaigning alongside incumbent Republican U.S. Senator Pete Ricketts and Governor Jim Pillen ahead of the November midterm elections.
