Trump signs order to allow tax-free dyed diesel for all vehicles

President Trump signed an executive order on Monday allowing road vehicles to use red-dyed diesel fuel. He signed it in Grand Island, Nebraska. Red-dyed diesel is normally only for off-road vehicles, such as farm equipment and construction machinery. It is chemically the same as regular diesel but costs less because it is not taxed like road fuel. The order removes federal road taxes on this fuel until the end of the year. Diesel prices have been very high recently, reaching $6.32 per gallon on Monday. That is $2.63 more than a year ago. Ten states had already made similar changes before Trump acted. The order also encourages other states to remove their own taxes on dyed diesel.