Trump to Sign Executive Order to Lower Diesel Costs: Report
President Donald Trump plans to implement executive measures aimed at reducing diesel fuel costs. According to Politico,he will order a review by the Treasury Department of taxes that raise diesel prices and will instruct states to boost the supply of tax-exempt red-dyed diesel used in critical sectors like farming and construction. Additionally, some states have already begun to modify diesel taxes or allow wider use of dyed diesel.The move responds to geopolitical tensions, such as conflicts involving Iran and Ukraine, which have decreased oil supply and driven prices higher. As of early October 2026, the average diesel price in the U.S. is approximately $6.32 per gallon, with efforts underway to possibly save truckers about 60 cents per gallon through federal actions. The administration also coordinated with G7 countries to release 100 million barrels of diesel to help stabilize prices. Despite increased exports, the policy does not include a ban on diesel exports.The overall goal is to mitigate rising fuel costs amid ongoing global supply disruptions.
A new report says President Donald Trump will take executive actions to lower diesel fuel costs.
According to Politico, which cited sources it did not name, Trump will order a Treasury Department review of taxes that increase the consumer price of diesel fuel.
An executive order to be issued Monday will order states to increase the supply of what’s called tax-exempt red-dyed diesel.
The report said Trump will announce the order, which has been under development for a week, at a campaign rally in Nebraska.
🚨 JUST IN: President Trump says gas prices are going up because UKRAINE and ZELENSKY keep blowing up Russian refineries — and DEMOCRAT states shut down refineries domestically
47 is cleaning up the mess!
“What’s driving up Gasoline is no longer the Strait of Hormuz, because Record Numbers of Barrels are coming out now on an almost daily basis, but the word, “Refineries,” where Russia’s are being blown up by Ukraine, and where ours are being closed up, in Blue States, like California, by the Dumocrats.”
100 million barrels of diesel are being released by Europe and Hormuz flows are SURGING.
Trump last month had said he asked Zelensky to STOP strikes on Russian refineries
— Eric Daugherty (@EricLDaugh) October 5, 2026
The tax-exempt fuel is used in farming, construction, and other critical sectors.
The Politico report said the order would call upon states to put limitations on dyed diesel in abeyance for the time being.
States will be urged to waive some fuel taxes as well.
The war with Iran, which has limited the oil coming out of the Middle East, and the Ukrainian attacks on Russia which reduced the flow of oil exports have driven down supply, thereby increasing prices.
As of Monday, AAA had the average price of diesel fuel at $6.32 per gallon.
Some 10 states that make up about a third of all diesel sales have already either cut taxes or allowed wider use of dyed diesel.
Patrick De Haan, head of petroleum analysis for GasBuddy, said in a social media post that federal actions could save truckers about 60 cents per gallon.
“Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately…” – President Donald J. Trump https://t.co/SkU8ANK7ev
— The White House (@WhiteHouse) October 2, 2026
Exports of American diesel have been on the rise with the Trump administration mulling a ban on exports.
However, the policy being rolled out Monday does not ban the shipping of diesel overseas.
Last week, the G7 countries announced that they would release 100 million barrels of diesel, according to Reuters.
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