Trump Says $100-Plus per Fill-Up, but Truckers Say Red-Dyed Diesel Offers Only 'Minimal Relief'

President Donald Trump claims his new fuel plan could save truckers more than $100 (£75.60) on a single 250-gallon fill, but industry groups warn that temporarily easing penalties on red-dyed diesel and deferring some federal fuel taxes will offer only 'minimal relief' while prices stay near record highs.

President Donald Trump has signed an executive order intended to ease diesel costs by temporarily relaxing federal penalties on highway use of red-dyed diesel and directing the Treasury Department to determine whether qualifying federal fuel-tax payments can be deferred through the end of the year.

The White House says relief could exceed $100 (£75.60) on a 250-gallon fill where states take corresponding action.

The 5 October order requires Treasury to determine within five days whether existing law authorises relief under 26 U.S.C. 7508A and which taxpayers qualify. If those conditions are met, Treasury is directed to defer eligible taxes incurred from 5 October through 31 December without interest or penalties.

The order also directs the Internal Revenue Service not to impose specified federal penalties when dyed diesel is sold for highway use or used on highways during that period. Treasury must issue guidance setting out the relief, eligibility rules and the date postponed taxes must ultimately be paid.

The administration has separately instructed Treasury to explore ways, including legislation, to eliminate the deferred liability.

Federal taxes and fees on highway diesel total 24.4 cents per gallon, according to the US Energy Information Administration. That amount is equivalent to about $61 (£46.12) on a 250-gallon fill. The White House says the benefit could top $100 (£75.60) where states adopt corresponding measures.

Average state diesel taxes and fees were 35.5 cents per gallon as of January 2026, although rates vary by state.

Trucking Groups Question Scope of Red-Dyed Diesel Relief

The Owner-Operator Independent Drivers Association, which represents small-business truckers, said the measure would offer only limited help while fuel prices remain elevated.

'OOIDA believes allowing the wider use of red-dyed diesel will provide minimal relief,' President and CEO Todd Spencer said. He added that every $1 (£0.76)-per-gallon increase in fuel costs members about $400 (£302.38) a week and warned that sustained high prices could force some drivers out of business.

The American Trucking Associations also questioned how much the order could accomplish. Henry Hanscom, the group's chief advocacy and public affairs officer, said expanding highway use of dyed diesel 'does not create additional fuel or address the underlying supply crunch that is driving prices higher'.

Hanscom also stressed that the order provides temporary penalty relief and potential tax deferral rather than outright forgiveness, and said carriers need clear federal and state guidance on eligibility, reporting and taxes that may remain payable.

The criticism comes after US diesel prices reached record highs in September. Reuters reported Tuesday that the EIA expects retail diesel to remain above $6 (£4.54) a gallon in October before gradually declining, with global inventories falling and diesel markets remaining tight.

Red-Dyed Diesel Rules Vary by State

The federal order does not erase state fuel taxes or automatically override state restrictions on dyed diesel. Patrick De Haan, head of petroleum analysis at GasBuddy, has warned that many states maintain separate taxes and rules governing dyed fuel, creating potential complications for interstate carriers.

That distinction matters for fleets travelling across several jurisdictions. A federal penalty reprieve does not necessarily protect a carrier from penalties under state law, while the larger savings promoted by the White House depend on states adopting corresponding relief.

There is also uncertainty over the ultimate federal tax liability. Kevin Book, managing director at ClearView Energy Partners, said the order does not necessarily eliminate the 24.4-cent-per-gallon federal liability and appears instead to defer it while the administration considers how it could be removed.

For carriers, that makes the immediate benefit more limited than a permanent tax cut. Treasury's forthcoming guidance is expected to clarify who qualifies, what remains payable and when postponed taxes are due.

Until those details are issued, the practical value of the measure is likely to vary by state, seller and route. The order may provide temporary cash-flow relief for some operators, but trucking groups say it does not address the supply constraints they see as the central driver of high diesel prices.