Truck stops across the country were warned Tuesday to “proceed with caution” by a major industry group after President Donald Trump signed an executive order to promote the use of “red dye” diesel fuel.
Red dye diesel is exempt from federal excise taxes because it is intended for agricultural equipment and other off-road uses.
The order, signed in front of Nebraska farmers Monday evening, aims to lower fuel prices by “temporarily” allowing the use of red-dye diesel fuel on highways, according to a White House statement.
American voters are deeply frustrated by high gas prices, and the Trump administration is under intense pressure to reduce fuel prices ahead of the November 3 midterm elections.
Monday’s order directs Treasury Secretary Scott Bessent to “defer certain diesel fuel tax payment obligations and provide penalty relief to the extent permitted by law.”
It does not eliminate federal taxes, because only Congress can eliminate a tax.
Following Trump’s directive, the Energy Marketers of America warned gas stations to “proceed with caution.”
“Whether relief is available, who it covers and on what terms depends on Treasury determinations and guidance not yet published,” the group said. “Forgiveness is not forgiveness.”
Additionally, the order does not “resolve EPA or state restrictions” on the dyed variety of diesel fuel, the EMA said.
Other trucking and gas industry groups have issued a similar warning.
“The White House appears to be trying to encourage the supply chain to move toward selling non-traditionally dyed fuel,” the Society of Independent Gasoline Marketers of America and the National Association of Truck Stop Owners said in a memo to their members.
“We do not expect the most reputable diesel retailers and fuel distributors to do this,” they said. “First, the tax is still due, so the upside potential is limited.”
Additionally, “logistical challenges outweigh any visible benefits: residual dyes persist in fuel tanks and systems.”
For most fuel sellers, “customer liability and risk outweigh any temporary and uncertain benefits.”
The White House did not immediately respond to a request for comment.
A group representing independent long-haul truckers also suggested that Trump’s decision would bring little benefit to its members.
“Allowing broader use of red-tinted diesel will provide minimal relief. Market stability is key to reducing long-term costs,” said Todd Spencer, president of the Owner-Operator Independent Drivers Association.
Since the start of the war with Iran, the price of diesel has risen from $3.76 per gallon to $6.32 on Tuesday, an increase of nearly 70 percent.
The Iranian conflict is not the only one contributing to the surge in diesel prices.
A recent escalation of the war between Ukraine and Russia has resulted in Ukrainian drone strikes against Russian refineries.
Russia, traditionally one of the world’s largest diesel exporters, responded to the attacks by imposing a diesel export ban until at least the end of October.
Trump urged Ukrainian President Volodymyr Zelenskyy to stop strikes on Russian diesel infrastructure.
“Mr. Zelensky has to do one thing. He has to stop cutting out diesel fuel in Russia,” Trump told reporters in early September. “There are many other goals. Don’t touch diesel fuel, because it harms the world.”
Oil prices have also remained significantly high since the start of the year. Brent crude oil, which was trading above $101 a barrel late Tuesday, is up more than 66% since the start of the year.
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