President Trump Just Signed an Executive Order Aimed at Cutting Soaring Diesel Prices

President Trump announced Monday that he had signed an executive order aimed at giving Americans relief from skyrocketing diesel prices. 

Speaking at a campaign event in Nebraska, Trump said the order would allow dyed, or “red,” diesel to be used on public highways through the end of 2026 while deferring the federal diesel tax normally owed on that use.

BREAKING: @POTUS just signed an Executive Order to immediately cut diesel costs by temporarily allowing highway use of tax-free dyed diesel and deferring the federal diesel tax on that fuel through the end of the year — no interest, no penalties. https://t.co/I3SOGev6R5

— Rapid Response 47 (@RapidResponse47) October 6, 2026

"Today I'm announcing another unprecedented step to bring down costs," the president said.

"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. And I'd like to ask Natalie to come out. Natalie, come out and bring it out here, Natalie. Bring it out. I'll sign it right here."

The move will save drivers about 24.4 cents per gallon, with the national average diesel price hovering around $6.32. Why are diesel prices so high? 

Conservatives have been quick to blame Ukraine’s strikes on Russian refineries, but the story is not that simple. Although the Trump administration has kept the Strait of Hormuz open, diesel exports from Iran remain far below prewar levels. Crude oil is leaving the country at roughly the same pace as before the Iran war. Diesel is not, and an open shipping route means little if the right fuel isn’t moving through it.

“Consumers don’t buy crude oil. They buy gasoline, jet fuel and diesel,” Andy Lipow, president of Lipow Oil Associates in Houston, told the Wall Street Journal. “As a result of missile and drone strikes in the Middle East, several large refineries have been damaged. The world finds itself short of refined products.”

According to the Journal, an open Strait is not expected to bring down gasoline or diesel prices anytime soon. Shipments of oil products such as gasoline and diesel totaled just 1.3 million barrels a day, only 11 percent of the total flowing out of the Strait. Before the war, those shipments were nearly twice as high. 

Nor is refinery damage confined to Iran. Saudi Arabia, Kuwait, the United Arab Emirates, Iraq, and other countries have also suffered damage from Iranian or Iranian-backed strikes. Reopening a shipping route is one thing. Restoring the refineries that supply it is another.

The move follows Trump’s push last week to persuade the G7 to release 100 million barrels of crude oil and fuel from emergency reserves, a measure that could ease rising costs. According to The Wall Street Journal, gasoline and diesel prices are expected to remain elevated well into 2027.

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