Trump plans broader tax-exempt diesel access

President Donald Trump is preparing an executive order expected as soon as Monday, Oct. 6, 2026, to ease diesel costs by expanding access to tax-exempt red-dyed diesel, typically restricted to off-road uses such as farming and construction. Reported elements include a Treasury Department review of certain diesel-related taxes, direction for the Department of Transportation to work with states on waiving road-diesel taxes, and possible non-enforcement of dyed-diesel restrictions; full details have not been released. U.S. average diesel was $6.32 a gallon as of last Sunday, down 13 cents from the prior week but $2.63 higher than a year ago, after an all-time high of $6.53 last month and a rise of more than 60% from $3.76 on Feb. 28. Last Friday the G7 and partners announced a coordinated release of up to 100 million barrels of emergency oil and diesel reserves through the IEA; Trump then stated the United States would no longer pursue a diesel export ban. The steps come ahead of the Nov. 3 midterms as high prices burden farmers, truckers and consumers. Some Republicans oppose diesel-tax waivers because those revenues help fund roads and other infrastructure. How much of the reserve release is new supply, and how far wider tax-exempt access will cut pump prices, remains unresolved. Trump planned to travel to Nebraska on Monday.