# US diesel fuel price relief efforts > Live situation record from CLSTR: https://clstr.news/situations/us-diesel-fuel-price-relief-efforts > Updated: 2026-10-07T18:00:31.000Z. Sources: 140. Developments: 3. To combat soaring fuel costs, the White House has been evaluating regulatory relief that would expand the use of red-dyed diesel. This fuel type is currently largely exempt from the 24.4-cent-per-gallon federal highway diesel tax and is primarily restricted to off-road use in sectors such as farming and construction. As diesel prices reached record highs, exceeding $6.50 per gallon, the administration moved toward introducing measures to ease restrictions on this tax-exempt fuel. In October 2026, President Trump signed an executive order during a campaign rally in Grand Island, Nebraska, to reduce fuel costs by expanding access to tax-free red-dyed diesel. The order temporarily allows the use of this off-road fuel for highway purposes through December 31 and instructs the Treasury Department, in consultation with the Department of Defense, to determine within five days which federal diesel-tax payments can be deferred without interest or penalties. Additionally, the order directs the IRS to waive normal penalties for the use of dyed diesel on highways during this period. The administration is also exploring ways to potentially eliminate the obligation to pay these deferred taxes entirely. Global supply disruptions, including the Iran war affecting the Strait of Hormuz, Russian export restrictions, and attacks on Russian refineries, have contributed to tightened supply chains. While the administration suggests the move could save truck drivers over $100 per fill-up, fuel distributors and truck stops remain hesitant. Industry groups and experts have noted potential challenges, including the difficulty of cleaning dye from fuel tanks, the risk of depleting supplies intended for off-road machinery, and the fact that most truck stops do not stock red-dyed diesel. Businesses continue to seek clarity on whether the federal government will eventually demand payment for the deferred taxes or if the obligation will be permanently forgiven. ## Claims - The administration negotiated the release of 100 million barrels of refined diesel from European strategic reserves. (disputed by 4 sources) - G7 nations announced the release of 100 million barrels of oil and diesel from stockpiles to ease supply concerns. (disputed) - President Trump signed an executive order to expand access to tax-free red-dyed diesel. (corroborated by 28 sources) - The executive order defers the federal diesel tax through the end of the year for certain uses. (corroborated by 27 sources) - The executive order aims to lower the cost of goods, including groceries, by reducing diesel prices. (corroborated by 10 sources) - President Trump is conducting a 32-day campaign blitz of rallies ahead of the November 3 midterm elections. (corroborated by 6 sources) - Dan Osborn is running as an independent candidate for the Nebraska Senate seat. (corroborated by 6 sources) - The national average price of diesel has risen significantly, with recent reports placing it around $6.30 to $6.53 per gallon. (corroborated by 6 sources) - The current federal highway diesel tax is 24.4 cents per gallon. (corroborated by 6 sources) - Senator Pete Ricketts advised the White House to change its policy on importing foreign beef to support Nebraska ranchers. (corroborated by 4 sources) ## Timeline ### 2026-10-07: Trump issues executive order allowing red-dyed diesel use on US highways President Trump has issued an executive order allowing tax-free red-dyed diesel to be used on US highways through year-end to combat high fuel costs for truckers and farmers. 8 sources. https://clstr.news/cluster/trump-issues-executive-order-to-expand-access-to-dyed-diesel ### 2026-10-05: Trump signs executive order for tax-exempt red-dyed diesel use President Trump signed an executive order allowing temporary highway use of tax-exempt red-dyed diesel to combat soaring fuel prices, deferring federal excise taxes through the end of the year. 132 sources. https://clstr.news/cluster/nebraska-trump-campaigns-amid-childcare-subsidy-delays ### 2026-09-28: White House considers red-dyed diesel tax relief to lower fuel prices The White House is considering expanding the use of tax-exempt red-dyed diesel to lower fuel costs for farmers and truckers as national diesel prices hit record highs. 3 sources. https://clstr.news/cluster/white-house-considers-red-dyed-diesel-tax-relief-to-lower-fuel-prices --- Cite as: US diesel fuel price relief efforts. CLSTR, https://clstr.news/situations/us-diesel-fuel-price-relief-efforts