A major industry group warned truck stops across the country on Tuesday to “proceed with caution” after President Donald Trump signed an executive order to promote the use of “red dye” diesel fuel. Red-tinted diesel is exempt from federal excise taxes because it is intended for agricultural equipment and other off-road uses. The order, signed before Nebraska farmers Monday night, aims to reduce fuel prices by “temporarily” allowing the use of red-tinted diesel fuel on highways, according to a White House statement. American voters are deeply frustrated by the high price of gasoline, and the Trump administration is under intense pressure to reduce fuel costs before the Nov. 3 midterm elections. Monday’s order instructs Treasury Secretary Scott Bessent to “defer certain diesel fuel tax payment obligations and provide penalty relief to the extent permitted by law.” It does not eliminate federal taxes, because only Congress can eliminate a tax. Following Trump’s directive, Energy Marketers of America warned gas stations to “proceed with caution.” “Whether relief is available, who it covers and under what conditions depends on Treasury determinations and guidance that have not yet been issued,” the group said. “The postponement is not a forgiveness.” Additionally, the order does not “resolve state or EPA restrictions” on the dyed variety of diesel fuel, the EMA said. Other trucking and gas industry groups sounded a similar note of caution. “The White House appears to be trying to encourage the supply chain to move toward selling dyed fuel in non-traditional ways,” the Society of Independent Gasoline Marketers of America and the National Truck Stop Owners Association said in a note to their members. “We do not expect the most reputable diesel retailers and fuel marketers to do this,” they said. “First of all, the tax is still due, so the benefits are limited.” Furthermore, “the logistical challenges outweigh any visible advantages: residual dye remains in the fuel tanks and systems.” For most fuel sellers, “the liability and risk to the customer outweigh any temporary and uncertain benefits.” The White House did not immediately respond to a request for comment. Despite an executive order promoting red-tinted diesel, transportation and fuel industry groups are warning their members that it may not be worth the risk. Clayton Steward/Bloomberg via Getty A group representing independent long-haul truckers also suggested that Trump’s move would provide few benefits to its members. “Allowing the broader use of red-tinted diesel will provide minimal relief. Market stability is essential to reducing long-term costs,” said Todd Spencer, president of the Owner-Operator Independent Drivers Association. Since the war with Iran began, the price of diesel has increased from $3.76 per gallon to $6.32 on Tuesday, an increase of almost 70%. The conflict with Iran is not the only conflict contributing to the skyrocketing price of diesel. A recent escalation of the war between Ukraine and Russia has included Ukrainian drone attacks on Russian refineries. Russia, traditionally one of the world’s largest diesel exporters, has responded to the attacks by imposing a ban on diesel exports until at least the end of October. Trump has urged Ukrainian President Volodymyr Zelenskyy to stop attacks on Russia’s diesel infrastructure. “Mr. Zelenskyy has to do one thing. He has to stop phasing out diesel fuel in Russia,” Trump told reporters in early September. “There are many other objectives. Don’t affect diesel fuel, because that is harming the world.” Oil prices have also remained very high since the beginning of the year. Brent crude oil, which was trading above $101 a barrel Tuesday night, is up more than 66% since the beginning of the year.
