President Trump signed an executive order Monday waiving restrictions on the use of tax-exempt red-dye diesel, which he said will ease the pain at the pump for truckers and lower the cost of groceries nationwide.
The president described the order — which he inked midway through a raucous midterm election rally in Grand Island, Nebraska — as an “unprecedented step to bring down costs,” and he predicted it would help Republicans in the critical November contests.
“For many years, farm vehicles, construction equipment and other off-road vehicles have used what is known as red-dye diesel … which is exactly the same as normal diesel but is sold tax-free for off-road vehicles and big trucks,” Trump explained.
“So tonight, I’m going to sign a historic executive order to officially waive the off-road requirement and allow anyone to purchase tax-free, red-dye diesel for any reason,” he announced.
White House aide Natalie Harp brought the order up on stage, per Trump’s direction, and the president signed it at the podium.
“Pete and Jim, this should absolutely ensure your election, I guarantee you that,” Trump said, addressing Sen. Pete Ricketts (R-Neb.) and GOP Gov. Jim Pillen, who are both running for another term in their respective races.
The president said the average trucker “will save over $100 every time they fill up,” with the order in place.
Additionally, farmers “will also save millions and millions of dollars,” according to the president
“This order will also drive down the cost of all goods, including grocery prices, very substantially,” Trump continued, calling it “an honor” to sign the executive action.
The fuel is the same chemically as regular diesel fuel, but is dyed red to distinguish its tax-exempt status.
Until now, red-dyed diesel, meant for equipment like tractors, has been banned from use on public roads.
Last week, Trump secured the release of up to 100 million barrels of diesel oil from European reserves in an effort to lower the skyrocketing price of the fuel.
The cost of diesel fuel in the US hit an all-time record high of $6.52 per gallon last month, according to AAA.
It has dipped down to $6.32 as of Monday, but is still far above its average of $3.70 a gallon from this time last year.
The pricier, refined fuel is used in heavy trucks, meaning it has a direct impact on transportation costs and the price of everything consumers buy that is transported on the nation’s highways.
“We’re not going to need it long,” Trump said of easing the restrictions on red-dye diesel.
“Prices are plummeting and they’re going to really be plummeting just a little while,” he added, alluding to the end of the war in Iran, which he has said will happen “very soon” after the midterm elections.
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