WASHINGTON (dpa-AFX) - President Donald Trump has signed an executive order to reduce diesel prices by temporarily allowing off-road 'dyed' diesel for highway use and deferring the federal taxes on it for the rest of the year.
The Special Order, which Trump signed on stage during a rally in Nebraska on Monday, directs the Secretary of the Treasury to defer payment of the Federal excise tax imposed for on-road use of dyed diesel fuel through December 31 without interest or penalties, and to explore pathways to eliminate the obligation to pay the deferred taxes.
The Secretary of Transportation will coordinate with States, industry leadership, and labor organizations on access to dyed diesel.
The Order directs the Secretary of Agriculture to ensure farmers' access to dyed diesel in high-demand areas, and to encourage corresponding action by States.
The Director of the White House Office of Intergovernmental Affairs will urge more States to adopt policies that correspond with the Secretary of the Treasury's actions pursuant to this Order.
This action is estimated to save truckers more than $100 per refill, according to the White House.
Trump took action to temporarily waive highway use restrictions allowing wider use of red-dyed diesel as prices hit record highs.
Trucking associations have been asking for diesel tax relief.
Diesel prices have receded last week, but they continue to be well above the levels they were a month ago.
Diesel is taxed based on its intended use. 'On-road' or highway diesel is subject to state and federal excise taxes. Diesel used for off-road purposes, such as agricultural, construction, or heating, is not taxed. This off-road diesel is dyed red so that law enforcement can identify it to enforce penalties and back taxes for on-road use.
The Trump Administration and State Governors can exercise their enforcement discretion to halt inspections and waive the tax liability that users would face for on-road use of dyed diesel, the White House said.
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