Trump signs order aimed at lowering diesel costs for truckers and farmers

President Donald Trump signed an executive order on October 5 aimed at lowering diesel costs, directing federal agencies to temporarily defer certain diesel fuel tax obligations and expand access to dyed diesel for highway use. The White House said the move is designed to ease pressure on truckers, farmers and other diesel-dependent businesses facing elevated fuel prices.

The action affects industries that depend heavily on diesel for transportation and farm operations, including long-haul trucking, agriculture and some construction uses. According to the White House, the order is meant to put money directly back into the pockets of workers and businesses that have been hit by higher fuel costs and tighter global diesel supply.

Dyed diesel, sometimes used in off-road equipment, is sold tax-free for certain non-highway purposes. The new order temporarily allows its use on highways through the end of the year and defers the federal excise tax on that fuel during the same period, according to White House materials released alongside the order.

How the order works

The White House said the Treasury Department was directed to defer payment of the federal diesel excise tax, without interest or penalties, and to examine ways to eliminate the deferred tax obligation. The Agriculture Department and the Transportation Department were also told to help implement the policy and coordinate with states, industry leaders and labor organizations.

The White House fact sheet said the federal diesel tax is 24.4 cents per gallon and estimated that the savings could be larger in states that choose to match the federal action. The administration also said the order could encourage states to adopt similar policies, though any state-level response was not immediately announced.

The order comes as diesel prices remain a concern for sectors that move freight and grow food, both of which are especially sensitive to fuel costs. The White House framed the move as part of Trump’s broader affordability agenda, though the long-term effect will depend on how the policy is carried out and whether states choose to align with it.

Further guidance from federal agencies is expected in the coming days as the administration begins implementing the order.