Trump eliminates federal diesel tax and allows sale of red diesel

US authorities have abandoned the federal tax on diesel fuel amid the crisis.

President Trump signed an executive order allowing the widespread sale of red diesel, which was previously used only in agriculture and construction.

Trump blamed the fuel crisis on Kyiv and the “stupidcrats” in California.

WASHINGTON, October 5 - RIA Novosti. The US authorities had to abandon the federal tax on diesel fuel amid the crisis, for which US President Donald Trump blamed Kyiv. The Ministry of Energy, upon request from RIA Novosti, reported that we are talking about a quarter of a dollar from each gallon (about 3.8 liters).

The U.S. sells about 4.5 billion gallons of taxed diesel fuel each month, another third of which is dyed for use in agriculture or construction.

"I'm announcing an unprecedented move to lower prices," Trump said at a rally in Nebraska.

The US President signed a decree right on stage allowing the widespread sale of red diesel.

“You know what this is? I don’t know what the hell it is. But whatever it is, it must be good,” Trump said.

The US President explained that red diesel fuel was allowed for agricultural, construction and special equipment. According to him, except for the color, the fuel is no different; coloring is needed for control when testing on public roads. Trump said a farmer would save $100 in taxes per tractor fill-up, and now food prices would go down, he added, implying that heavy-duty truck drivers in supply chains would not have to pay.

The American leader, in a post on his social network Truth Social on Monday, shortly before the rally, blamed Kyiv and the “stupidcrats” in California for the fuel crisis and the lack of oil refining capacity - plants are closing in the US. Attacks by the Armed Forces of Ukraine cause many problems for the United States, as does the insufficient number of factories in the country, the president explained to reporters.

According to analysts, the average price per gallon (about 3.8 liters) of diesel fuel in the United States is $6.3; in September it reached an anti-record, but decreased slightly.

The Ministry of Energy, in response to a request from RIA Novosti, reported that the price of red diesel fuel in the United States is not published. "Diesel fuel for off-road use is not subject to state and federal excise taxes applied to the retail sale of fuel for vehicles operated on public roads. Diesel fuel is colored red to distinguish it from regular fuel (including based on testing results - ed.)," the department said.

The price of regular diesel fuel in the United States exceeded the cost of gasoline when the demand for it increased, including in Europe, China and India, the department explained, and the collection in favor of the state for this type of energy carrier is higher. “The federal excise tax on highway diesel fuel is 6 cents per gallon higher than on gasoline,” the department added.

Farmers and other consumers save about 60 cents per gallon of red fuel, the department said. The federal fee is 24.4 cents, the department specified.