President Trump signed the executive order on Oct. 10, extending the use of red‑dyed diesel from farm equipment to trucks on public roads—an immediate policy tweak that could ripple through the supply chain.
The move comes after diesel prices surged 70% since the US‑Israel war with Iran began in February, pushing the national average to $6.30 per gallon by early October.
In a separate effort, the G7 nations agreed to release 100 million barrels of oil from strategic reserves—a push Trump urged in Washington to ease global supply constraints.
Retailers warn that the tax‑exempt status could trigger penalties if vehicles cross state lines, and logistics headaches loom as supply chains remain strained.
Patrick De Haan, head of petroleum analysis at GasBuddy, said the order offers only a temporary dent, noting that a lasting drop hinges on geopolitical thaw.
The order takes effect immediately, and Trump’s team will gauge price changes in the coming weeks ahead of the Nov. 3 midterm election.