U.S. President Donald Trump has signed an executive order expanding access to tax-exempt diesel as soaring fuel prices frustrate voters ahead of the midterm elections. But farmers say using the fuel on public roads is too risky, while many other drivers cannot get hold of it.
Trump's order temporarily waives the off-road requirement for red-dyed diesel, which is usually sold for farm equipment. Red diesel is essentially the same as regular, or clear, diesel, but it is exempt from highway fuel taxes and dyed red to show those taxes have not been paid.
The Internal Revenue Service said it would not impose penalties for using dyed diesel on highways between 1 October and 31 December. However, it said the order had no effect on state taxes and penalties.
The move is one of several fuel-focused actions Trump has taken as he seeks to lower prices and lift approval ratings. On Monday, he announced an $8 billion support programme to offset diesel costs for farmers during the autumn harvest.
His administration has also relaxed sanctions on Russian fuel shipments, pushed allies to release emergency oil stocks and temporarily lifted restrictions on foreign-flagged vessels moving between U.S. ports. Prices nonetheless remain high because of the U.S.-led war with Iran.
Farmers burn the most diesel during the autumn harvest, running tractors, combine harvesters and other machinery on dyed fuel. Under Trump's order, they could also use red diesel in semi-trucks hauling crops to market, where states allow it.
But farmers said the savings were too small to justify the risk of red residue staying in their fuel tanks after the order expires. States set their own taxes and rules on red diesel and can fine drivers thousands of dollars if inspections find signs of improper use on public roads.
'In my mind, it's not anywhere near worth the risk,' said Glenn Brunkow, president of the Kansas Farm Bureau, who raises crops and cattle near Wamego, Kansas. 'That residue might be in there for years.'
Kansas, a major grain producer, bans dyed diesel on public roads unless it was bought lawfully outside the state. According to the Kansas Department of Revenue, violators can be charged with a felony, have their driving licence suspended and face penalties of $1,000 to $10,000.
The state's Democratic governor, Laura Kelly, said Kansas could not legally implement the order as drafted. In a statement, she said the Kansas Highway Patrol was concerned it 'would result in law enforcement difficulties once red dye diesel returns to its normal usage restrictions'.
Democrats hope rising farm costs will help them win back support in the Republican heartland in November's midterms.
White House spokesperson Taylor Rogers said Trump wanted lower fuel prices. 'President Trump remains committed to unleashing American energy dominance, cutting costs, and putting more money back in the pockets of hardworking American families,' she said.
Jay Sorg, a fifth-generation farmer in New Richland, Minnesota, said the order could save him $1,500 to $2,000, which is not enough to offset higher costs for fuel and other inputs. Like many farmers, he buys diesel in advance and stores it in tanks.
'In the grand scheme of our business, it's kind of inconsequential, especially when we already have fuel bought and in the tank for highway use,' Sorg said. 'It's a move to try to win votes.'
Ryan Wagner, a farmer in Roslyn, South Dakota, warned that wider use of tax-exempt red diesel could drain the government funds used to maintain roads. 'It's a very short-sighted plan that could come back and haunt us in the future,' he said.
Other motorists are struggling to get hold of red diesel at all.
In Iowa, Republican Governor Kim Reynolds has issued a proclamation allowing vehicles to use dyed diesel on highways until February, but only when they are hauling specific agricultural products. In Texas, drivers must register with the state to benefit from a temporary suspension of the restrictions.
Reuters visited four sites around Houston listed online as selling red diesel. Three sold only commercial diesel. At the fourth, the red diesel pumps were not working, and a notice said the fuel was purely for agricultural use and should not be used on roads.
Vincenzo Lasalosi, a Houston firefighter, said high prices had led him to consider using red diesel in his Ram 2500 truck, but he did not know where to find it.
'Even if I do find it, it's probably too far and not worth the drive to fill it up,' he said.
Kazakhstan is preparing sweeping military reforms after 14 service members died during exercises in the Caspian Sea. President Kassym-Jomart Tokaye...
Investing in children means more than funding schools and hospitals. At a major international summit in Samarkand, Uzbekistan, leaders and experts ...
Almost all of Taiwan shut down on Friday ahead of the arrival of Typhoon Champi...
Russia is willing in principle to resume peace talks with Ukraine and the United States in November, Kremlin aide Yuri Ushakov said after President Vladimir Putin met U.S. special envoy Steve Witkoff in St Petersburg.
Russian strikes on Ukraine overnight killed at least two people and injured 15 others, including two children, Ukrainian authorities said. Meanwhile, Russia said it had intercepted the vast majority of 630 Ukrainian drones launched towards Moscow.
Saudi Aramco has ordered staff to evacuate its headquarters amid escalating Houthi attacks on the kingdom. Two people were killed in an attack on Dammam airport, while Iran's IRGC Navy claimed strikes on seven vessels and warned the U.S. of a wider response.
Yemen's Houthis have denied targeting the holy city of Medina on Wednesday adding that they have not conducted any military operations towards Saudi Arabia either, denying earlier comments from the Saudi-led coalition in Yemen.
Georgia’s Constitutional Court in Batumi will on Wednesday hear a lawsuit seeking to ban five Georgian opposition parties, four of which collectively gained 784,820 votes (37.79 per cent) in the country’s last national elections in 2024.
Almost all of Taiwan shut down on Friday ahead of the arrival of Typhoon Champi, which is forecast to bring strong winds and torrential rain, and though the storm is weakening it could still make direct landfall on the island.
The FIFA U-20 World Cup 2027 will take place from 17 September to 9 October next year in Azerbaijan and Uzbekistan, FIFA President Gianni Infantino announced on Friday.
French President Emmanuel Macron said on Thursday that ‘illegitimate’ protests would be banned in the coming days. He blamed ‘seditious’ ultra-left groups and vandals for last weekend’s riots and looting, as authorities prepare for fresh demonstrations on Saturday.
Russian strikes on Ukraine overnight killed at least two people and injured 15 others, including two children, Ukrainian authorities said. Meanwhile, Russia said it had intercepted the vast majority of 630 Ukrainian drones launched towards Moscow.
Nigeria's first Ebola case in more than a decade may be linked to travel in Uganda, Swiss authorities said on Thursday, although the source of infection remains unclear. Uganda maintains it has no cases of the disease.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment