Industry groups representing energy marketers and truck stops are warning against Donald Trump’s plans to tackle soaring diesel prices caused by his war in Iran.
During a campaign rally in Nebraska on Monday, Trump signed an executive order—brought to him by his favorite White House aide, Natalie Harp—allowing “red-dyed” diesel for highway use as a temporary move to lower diesel prices.
Off-road “dyed” diesel is normally intended for agricultural purposes and farm equipment and is exempt from federal and state excise taxes.
The desperate move from the president arrived as voter backlash over soaring gas and diesel prices leaves the GOP facing electoral wipeout in the Nov. 3 midterms. The average price of diesel stands at $6.30, more than $3 higher than a year ago.
However, Energy Marketers of America has urged gas stations to “proceed with caution” and warned that several questions about Trump’s directive remain unanswered.
“Whether relief is available, whom it covers, and on what conditions depend on Treasury determinations and guidance not yet issued,” the group said, via NBC News. “Deferral is not forgiveness.”
Trump’s order instructs Treasury Secretary Scott Bessent to defer payment of the federal excise tax imposed on on-road use of dyed diesel fuel “for the remainder of the year without interest or penalties and to explore pathways to eliminate the obligation to pay the deferred taxes.”
Two other trucking and gas industry groups—the Society of Independent Gasoline Marketers of America and the National Association of Truck Stop Owners—also issued similar warnings about Trump’s dyed-diesel plans.
“The White House appears to be trying to encourage the supply chain to move toward selling dyed fuel in non-traditional ways,” the groups said in a note to their members.
“We do not expect most reputable diesel retailers and fuel marketers to do this,” they added. “First, the tax is still owed, so there’s limited upside.”
The groups also fear that “logistical challenges” outweigh any visible upside, given that “residual dye lingers in tanks and fuel systems.”
For most fuel sellers, “the liability and customer risk outweigh any temporary, uncertain benefit.”
Todd Spencer, president of the Owner-Operator Independent Drivers Association, which represents independent long-haul truckers, also believes the plan will be of little benefit to its members.
“Allowing the wider use of red-dyed diesel will provide minimal relief. Market stability is essential to bring down costs for the long haul,” Spencer said.
The Daily Beast has contacted the White House for comment.
