OMM Newsroom
US President Donald Trump has signed an order expanding access to tax-exempt diesel as rising fuel prices fuel voter dissatisfaction ahead of the midterm elections. Farmers say using the fuel on public roads carries risks, while other drivers say it is difficult to find. They say the potential savings do not justify the risk of fines, AnewZ reports.
Trump’s order temporarily lifts the requirement that red-dyed diesel, usually sold for agricultural machinery, be used only off-road. Red diesel is almost identical to regular, undyed diesel but is exempt from the fuel taxes levied for highway use. The red dye indicates that those taxes have not been paid.
The Internal Revenue Service said it would not impose federal fines for using dyed diesel on highways from Oct. 1 through Dec. 31. The agency said, however, that the order does not affect state taxes or penalties.
The measure is one of several steps Trump has taken to lower fuel prices and boost support. On Monday, he announced an $8 billion assistance program to help farmers cover diesel costs during the fall harvest.
The Trump administration has also eased sanctions on Russian fuel shipments, urged allies to release emergency oil reserves onto the market and temporarily waived restrictions on foreign-flagged ships traveling between US ports. Prices remain high amid the US war with Iran.
Farmers worry about fines
Farmers use the most diesel in tractors, combines and other machinery during the fall harvest. Under Trump’s order, they may also use red diesel in heavy trucks carrying crops to market where state law allows it.
Farmers say the risk of red dye remaining in fuel tanks after the order expires is not worth the potential savings. States set the taxes and rules governing red diesel. If an inspection finds evidence that fuel was improperly used on public roads, drivers could face fines of thousands of dollars.
Glenn Brankow, president of the Kansas Farm Bureau and a crop and livestock farmer near Wamego, said: “I don’t think it’s worth taking that risk at all. The residue can remain in there for years.”
In Kansas, a major grain-producing state, dyed diesel is prohibited on public roads unless it was legally purchased outside the state. According to the Kansas Department of Revenue, violators could face criminal charges, suspension of their driver’s licenses and fines ranging from $1,000 to $10,000.
Kansas’ Democratic governor, Laura Kelly, said the state could not legally implement the order as currently written. In a statement, she said she was concerned the order would create difficulties for the Kansas Highway Patrol when red diesel is once again subject to the usual restrictions.
Democrats hope rising costs for farmers will help them regain voter support in Republican-dominated states in the November midterm elections.
White House spokeswoman Taylor Rogers said Trump wants to lower fuel prices. “President Trump is committed to strengthening American energy dominance, lowering costs and ensuring hardworking American families have more money in their pockets,” she said.
Jay Sorg, a fifth-generation member of a farming family in New Richland, Minnesota, said the order could save him $1,500 to $2,000, but would not offset increases in fuel and other production costs. Like many farmers, he buys diesel in advance and stores it in tanks.
Sorg said: “In the overall scope of our business, it’s not a significant amount. Especially since we’ve already bought the fuel and filled the tank for highway use. This is a move aimed at winning votes.”
Ryan Wagner, a farmer in Roslyn, South Dakota, warned that wider use of tax-exempt red diesel could reduce state funding for road maintenance. “This is a short-sighted plan that could create problems for us in the future,” he said.
Red diesel is also hard to find
Other drivers are having difficulty obtaining red diesel. Iowa’s Republican governor, Kim Reynolds, signed a proclamation allowing vehicles to use dyed diesel on highways through February, but the authorization applies only to vehicles carrying certain agricultural products. In Texas, drivers seeking to use temporary exemptions must register with the state.
Reuters visited four locations around Houston listed online as selling red diesel. Three sold only commercial diesel. At the fourth, the red-diesel pumps were not working, and a sign said the fuel was for agricultural use only and should not be used on roads.
Houston firefighter Vincenzo Lasalosi said high prices had made him consider using red diesel in his Ram 2500 pickup truck, but he did not know where to find it. “Even if I did find it, it would probably be too far out of the way to go and fill up, and it wouldn’t be worth it,” he said.
