Trump Signs Order to Cut Diesel Costs for Truckers and Farmers

President Donald J. Trump has signed an Executive Order aimed at reducing diesel costs for American truckers and farmers by temporarily allowing the use of off-road dyed diesel on highways. The order, signed on October 6, 2026, defers the federal excise tax on dyed diesel fuel for highway use through the end of the year, without interest or penalties, according to the White House.

The Executive Order directs the Secretary of the Treasury to defer the payment of the federal excise tax for on-road use of dyed diesel fuel. This move is expected to lower costs for Americans, particularly truckers and farmers, who are essential to the nation's economy. The federal diesel tax is currently 24.

4 cents per gallon, which translates to about $60 on a 250-gallon fill. Where states align with this federal action, savings could exceed $100 per fill.

Coordination and Implementation

The order also involves several other government departments to ensure its effective implementation. The Secretary of Transportation is tasked with coordinating with states, industry leaders, and labor organizations to facilitate access to dyed diesel. Meanwhile, the Secretary of Agriculture is instructed to ensure that farmers have access to dyed diesel in high-demand areas. The Director of the White House Office of Intergovernmental Affairs is encouraged to promote state policies that align with the federal deferral of the diesel tax.

The Trump Administration has emphasized that this measure is part of a broader agenda to address fuel affordability amid rising diesel prices. These price increases are attributed to restricted global supply, driven by the ongoing Russia-Ukraine war and a lack of refining capacity worldwide. The Administration has also taken steps to bolster American energy production and reduce regulatory burdens that have been blamed for inflating energy costs.

Economic Impact and Future Steps

The Executive Order is part of President Trump's continued efforts to support American truckers and farmers. Since returning to office, the Administration claims to have increased truckers' earnings by over 7% and provided over $40 billion in direct aid to farmers since January 2025. The Department of Transportation has also waived hours of service rules for truck drivers handling gasoline and diesel shipments, allowing them to drive additional hours and further reduce fuel costs.

In addition to domestic measures, President Trump has engaged in international negotiations to secure energy resources. In August 2026, he announced a deal with Venezuela to secure 65 billion barrels of oil, and in October 2026, he negotiated with Europe to release 100 million barrels of refined diesel from strategic reserves within four months.

The Executive Order represents a significant step in the Administration's strategy to alleviate the financial burden on American farmers and truckers, ensuring that they can continue to play a vital role in the nation's economy. The White House has not announced any further steps beyond the current measures, but the situation will likely be monitored closely as global energy dynamics continue to evolve.