US President Trump Will Sign Executive Order Allowing Free Use of Red Diesel

US President Trump announced at the rally he held in Nebraska that he had taken another "unprecedented" step to reduce costs.

Stating that the fuel known as "red dyed diesel" is used in agricultural vehicles, construction equipment and other off-highway vehicles, Trump said that this fuel is exactly the same as normal diesel, but is sold tax-free for off-highway vehicles and large trucks.

Trump said he would sign an executive order that would lift the off-road use requirement and allow "anyone to purchase red diesel tax-free for any purpose."

According to the information note shared by the White House, Trump signed the decision that temporarily allows the use of red diesel on highways and postpones the payment of the federal consumption tax applied to it.

The decision instructed the U.S. Treasury Department to defer payment of the federal excise tax on the on-road use of red diesel until the end of the year, without interest or penalty. The decision also envisaged investigating options to eliminate the obligation to pay deferred taxes.

While the US Department of Transportation was tasked with coordinating with states, industry representatives and labor organizations regarding access to this fuel, the US Department of Agriculture was asked to ensure farmers' access to red dyed diesel in areas where demand is high and to encourage states to take similar steps.

IT IS AIMED TO REDUCE THE COST

According to AA news, it was noted that the step in question aims to reduce fuel costs for American farmers, truck drivers and employees, for example, truck drivers can save over 100 dollars on each fuel fill-up.

It was shared that the federal diesel tax is 24.4 cents per gallon, which corresponds to approximately $60 for a 250-gallon fill.

It was stated that if the states take steps in parallel with the federal practice, the savings on one filling is expected to exceed $100.

In the country, diesel fuel is taxed according to its intended use.

While diesel used on highways is subject to state and federal excise taxes, diesel used for non-highway purposes such as agriculture and construction is not taxed.

This diesel used off-road is painted red so that law enforcement can detect the use of the fuel on the highway and apply penalties and retroactive taxes accordingly.

*The photo of the news was provided by AP.