B · Normal
[Trump signs an executive order to temporarily relax restrictions on the highway use of duty-free diesel] On October 5, local time, U.S. President Trump signed an executive order to temporarily suspend the implementation of some federal restrictions on red-dyed diesel, allowing duty-free diesel that is usually limited to non-highway use to be used for highway transportation. Trump said the move was aimed at reducing costs. It is reported that the U.S. government does not have the authority to directly cancel the diesel tax without congressional approval. Therefore, the executive order adopts the method of suspending federal enforcement for a limited time. States can still decide on their own whether to continue to implement relevant tax regulations. The U.S. government hopes that this measure will reduce the fuel costs for farmers transporting crops during the current harvest season, and truck drivers who can obtain red-dyed diesel can also use this tax-free fuel. The U.S. Department of Agriculture estimates that based on each farmer traveling 150 miles (approximately 241 kilometers), farmers will save about $640 million in federal and state diesel taxes this harvest season. The White House estimates that truckers can save up to $129 each time they fill up with red-dyed diesel.
Red-dyed diesel is a kind of ordinary diesel with red dye added. The fuel composition is almost identical to highway diesel, except that the dye is added as a tax enforcement mark. It is mainly used to distinguish tax-free non-road fuel from highway fuel that requires payment of taxes. The use of dyed diesel in vehicles operating on public roads is illegal and may result in hefty fines as it constitutes tax evasion. But some U.S. states have previously relaxed restrictions on dyed diesel due to soaring fuel costs. (CCTV News)
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