Trump Plans To Ease Off-Road Diesel Restrictions Ahead Of Midterms
Bloomberg reported late Monday afternoon that the Trump administration is preparing to loosen restrictions on tax-exempt dyed diesel, seeking to ease costs for the industrial fuel that powers the economy amid a global refining crisis.
The report cites people familiar with the matter, and the new policy could be announced as soon as today.
The plan would allow broader use of dyed diesel, better known as off-road diesel, which is mostly used in farm machinery, construction equipment and other off-road applications. This move would allow for savings of 24 cents per gallon because the fuel is exempt from federal excise tax.
“While the move wouldn’t directly lower operational costs for harvesters, tractors, excavators and other off-road equipment that already runs on tax-exempt red diesel, it is seen as potentially cutting the expense to run pickup trucks and other on-road vehicles,” the outlet said.
As of Monday, US retail diesel prices averaged around $6.32 a gallon at the pump, down from September’s record $6.53 but roughly 68% above the $3.76 recorded before the US-Iran conflict began in late February.
Ukraine’s bombardment of Russian refineries and the Gulf crisis have disrupted refining and petroleum-product shipments worldwide.
Last week, President Trump’s threat to ban diesel exports to Europe spurred G7 member nations to begin releasing 120 million barrels of diesel over the next six months.
Tyler Durden Mon, 10/05/2026 – 15:00
Source: https://freedombunker.com/2026/10/05/trump-plans-to-ease-off-road-diesel-restrictions-ahead-of-midterms/
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