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Trump Allows Dyed Diesel on the Road: How Could It Affect Gas Prices

Trump Allows Dyed Diesel on the Road: How Could It Affect Gas Prices

Summary

President Donald Trump signed an executive order allowing the use of tax-free dyed diesel, normally for off-road vehicles, on public roads through the end of the year. The goal is to help reduce high gas and diesel prices, but experts say the change might not significantly lower fuel costs for most drivers.

Key Facts

  • Dyed diesel (red diesel) is the same as regular diesel but usually tax-free and for off-road use only.
  • The executive order lets people use dyed diesel on roads without paying the federal 24.4 cents per gallon tax.
  • The national average price for diesel is $6.31 per gallon, more than $2.50 higher than before the Iran conflict began.
  • Gas prices also remain high, with a national average of $4.37 per gallon, up from $3.13 a year ago.
  • States still have their own laws, so savings depend on how each state responds to the federal order.
  • Analysts say this temporary change might not increase diesel supply or significantly lower prices for most drivers.
  • The highest diesel prices are in California, Washington, and Hawaii, while the lowest are in Texas, Georgia, and Oklahoma.
  • Dyed diesel is red so authorities can easily spot unauthorized road use and impose fines.
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