Trump boosts dyed diesel availability amid high prices

Trump seeks to make more diesel available

President Trump on Monday night moved to make more diesel available in a bid to lower fuel prices .

“I’m going to sign a historic executive order to officially waive the off-road requirement and allow anyone to purchase tax-free red dyed diesel for any reason,” Trump said before calling on aide Natalie Harp to bring the order on stage for him to sign.

This diesel simply has dye added to it to signal that it is tax exempt and is typically used in machines such as farm and construction equipment.

Trump signed the order at a rally for Nebraska Sen. Pete Ricketts (R) and Gov. Jim Pillen (R). Ricketts’ reelection bid in particular has become increasingly competitive in recent weeks.

“So Pete and Jim, this should absolutely assure your election,” the president said.

The executive order directs the Treasury Secretary to consider deferring payments of federal excise taxes for on-road uses of dyed diesel for the rest of the year.

The moves come as diesel prices have reached record highs in recent weeks and put a strain on industries that use the fuel, including agriculture and trucking. As of Monday, diesel averaged about $6.32 per gallon , according to AAA .

Tom Kloza, chief oil analyst at Gulf Oil, told The Hill that he doesn’t expect that increasing availability of red-dyed diesel will make a significant difference in the price overall.

“This is really a cosmetic gesture,” Kloza told The Hill ahead of the actual announcement based on reports that such a move was forthcoming. “This really is a Band-Aid where a tourniquet would be more appropriate.”

Welcome to The Hill’s Energy & Environment newsletter, I’m Rachel Frazin — keeping you up to speed on the policies impacting everything from oil and gas to new supply chains.

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How policy will affect the energy and environment sectors now and in the future:

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