President Trump signed an executive order on October 5, 2026, letting truckers, farmers, and other qualifying highway users fill up with dyed diesel, the red-tinted fuel normally reserved for off-road equipment, without immediately paying the federal highway tax on it for a limited period.

Federal energy data shows national on-highway averages up one-third from January levels. Trump's order defers that tax on qualifying dyed diesel used in highway vehicles between October 5 and December 31, 2026, and tells the Treasury Department to explore ways to cancel the deferred bill entirely.

Diesel prices have climbed sharply in 2026 as Iran- and Ukraine-related supply disruptions pushed retail costs higher.

Dyed diesel has long been sold without the highway tax for tractors, generators, and construction equipment that never touch public roads. The new order temporarily eases that off-road limitation. It defers the federal tax on dyed diesel used in highway vehicles during the specified 2026 window, with eligibility and documentation rules to be set by the Treasury and the IRS rather than as a blanket right for every driver through next year.

"For many years, farm vehicles, construction equipment and other off-road vehicles have used what's known as red-dyed diesel," Trump said at the signing. "You know what that is? I don't know what the hell it is, but whatever it is, it is supposed to be very good."

North Dakota Gov. Kelly Armstrong pointed to the timing around harvest season. "Record-high diesel prices are squeezing our ag producers, and this is a meaningful and timely step we can take to provide temporary relief and help our farmers and ranchers through the harvest season," he said.

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