Trump to sign order expanding tax-exempt diesel access amid price surge

US President Donald Trump is preparing an executive order to expand access to tax-exempt diesel, expected to be unveiled as soon as Monday, according to sources familiar with the matter, as reported by Reuters.

High diesel prices, which shot to a record of about $6.50 a gallon last month, pose a risk to Trump ahead of the November 3 elections.

Prices for the fuel, integral to trucking goods, have risen amid the wars in Iran and Ukraine, which have led to attacks on refineries in Russia and the Middle East.

The order is expected to contain several measures to expand diesel access, including making more “red dye” diesel, typically used by the agriculture industry and off-road vehicles, more widely available, the sources said.

A third source said the order will likely direct the US Department of Transportation to coordinate with states to waive taxes on road diesel.The move follows last week’s announcement by G7 countries that they would release 100 million barrels of diesel, after pressure from Trump, who had earlier considered banning US diesel exports.

It remains unclear how much of that release will consist of entirely new supplies versus compliance with a global agreement reached in March.