President Donald Trump signed an executive order Monday temporarily allowing tax-exempt red-dyed diesel to be used on highways, expanding access to cheaper fuel as truckers and farmers grapple with diesel prices above $6 per gallon.

Trump Opens Dyed Diesel To Highways

"Tonight, I am going to sign a historic Executive Order to officially waive the off-road requirement and allow anyone to purchase tax-free red dye diesel for any reason," Trump said at a Nebraska campaign rally. He added that the move will "drive down the costs of all goods, including groceries."

The order, detailed in a White House fact sheet and a separate press release, directs Treasury to defer federal excise taxes on dyed diesel used on highways through Dec. 31, without interest or penalties and explore ways to eliminate the deferred obligation.

Red-dyed diesel is chemically the same as highway diesel but normally reserved for off-road uses such as farming and construction because it avoids road-fuel taxes. On-road diesel carries 24.4 cents per gallon in federal taxes, while state taxes and fees average another 35.5 cents, according to EIA data.

Trump had previously considered restricting diesel exports before dropping that idea last week. Diesel prices skyrocketed to a record of $6.53 a gallon on September 22, according to AAA. The average price for diesel in the U.S. on Monday was $6.32 a gallon.

Trump Shifts Blame Toward Refinery Disruptions

Earlier Monday, however, Trump sought to shift blame for high fuel prices away from the Strait of Hormuz, pointing to Ukraine’s attacks on Russian refineries and refinery closures in Democratic-led states as key reasons behind the climb.

The administration has also pressed allies for more supply. G7 countries agreed to release 100 million barrels of diesel and crude from emergency reserves, while several states have already suspended fuel taxes or expanded access to dyed diesel.

Vance Backs Relief As Prompt Action

Vice President JD Vance praised the move on X, calling it "another example of President Trump acting quickly to tackle an urgent issue." He added, "We’re fighting every day to help hard working Americans, especially our farmers."

The White House says the policy could save truckers more than $100 per refill where states match the federal action. Trump said he hopes the relief will not be necessary for long because fuel prices are "going to really be plummeting."