Nebraska:US President Donald Trump has signed an executive order that temporarily permits the use of off-road dyed diesel on highways and postpones the federal excise tax on this fuel until year-end.

According to Anadolu Agency, the executive order was signed during a rally in Nebraska, where Trump announced the decision to waive the off-road requirement, allowing the purchase of tax-free red-dyed diesel for any purpose.

This measure aims to alleviate diesel costs for consumers, farmers, truckers, and other workers, in light of what the administration has termed as ongoing global conditions impacting diesel supplies.

The order instructs the treasury secretary, in consultation with the secretary of defense, to defer the federal excise tax on on-road dyed diesel use until the end of 2026. During this period, no interest or penalties will accrue on the deferred tax, and the administration is tasked with exploring the elimination of the obligation to pay these deferred taxes.

Dyed diesel, often referred to as red-dye diesel, is typically used for off-road purposes like farming, construction, and heating, and is exempt from certain fuel taxes. The red dye helps authorities differentiate it from highway diesel.