On October 5, President Trump signed an executive order to reduce diesel fuel costs for American farmers, truckers and businesses. The order temporarily allows the use of red-dyed diesel fuel in highway vehicles. The action responds to sharply rising diesel prices driven by global supply disruptions and international conflicts.

Under the executive order, the administration directs the U.S. Treasury to defer the 24.4-cent-per-gallon federal diesel excise tax on qualifying dyed fuel used on highways through Dec. 31, 2026, without interest or penalties. This would provide about $24 in federal tax relief on a 100-gallon fill-up. The administration is also exploring options to permanently forgive the deferred taxes. The Departments of Agriculture and Transportation have been directed to coordinate with states, fuel distributors and industry stakeholders to facilitate implementation and ensure adequate supplies for agricultural operations.

Western Growers, in partnership with other agricultural groups across the West, sent letters to the Governors of California, Arizona and New Mexico, urging them to issue an executive order in their respective states. Specifically, each Governor was asked to temporarily allow the agricultural industry to use red-dyed diesel fuel on highways through the end of the year to transport products and equipment between farms, and commodities from the field to the point of processing.