US President Donald Trump signed an executive order allowing truckers and farmers to temporarily use cheaper red-dyed diesel on public roads, while postponing the collection of related taxes until the end of 2026. The move follows average US diesel prices surging past 6 dollars per gallon in September for the first time in history. Red-dyed diesel is normally reserved for off-road use and is exempt from the 24.4 cents per gallon federal diesel tax on highway transportation. The order also directs the Treasury Secretary to consult with the Department of Defense to delay collection of the federal excise tax on highway diesel until the end of 2026, without interest or penalties, and instructs the Treasury to consider ways to cancel all deferred tax liabilities in the future. Bob McNally, president of Rapidan Energy, estimates that Americans are spending about 700 million dollars more per day on gasoline and diesel combined compared with the same period a year earlier, and the White House says allowing red-dyed diesel could save truckers more than 100 dollars per fill-up. Meanwhile, the Group of Seven leading industrial nations, or G7, agreed to release a total of 100 million barrels of diesel and crude oil from their reserves after pressure from Trump, who had previously floated the idea of banning US diesel exports.
G7 releasing 100 million barrels of diesel and crude from reserves, plus cheaper red-dyed diesel allowed on roads, boosts distillate supply and pressures heating oil/diesel prices.
