President Donald Trump is expected to sign an executive order aimed at lowering diesel prices, according to a report cited in the article. The proposal has two main parts: a Treasury Department review of taxes that raise the price paid by diesel customers and a request for states to increase access to tax-exempt, red-dyed fuel.
The move comes as diesel prices remain high. AAA listed the nationwide average at $6.32 per gallon on Monday. Tax-exempt diesel is used in farming, construction and other critical sectors, giving the policy importance beyond the fuel pump.
Politico, citing sources it did not identify, reported that the order had been under development for about a week. The report said Trump planned to announce it Monday at a campaign rally in Nebraska. States would also be urged to place current limits on dyed diesel on hold and consider waiving some fuel taxes.
States are already testing parts of the plan
About 10 states, representing roughly one-third of all diesel sales, have already reduced fuel taxes or permitted broader use of dyed diesel, according to the report. The proposed federal action would encourage similar steps in other states.
The push follows a supply squeeze that has added to fuel costs. The article linked the pressure to the war with Iran, which limited oil coming out of the Middle East, along with Ukrainian attacks on Russian refineries that reduced the flow of Russian oil exports.
Trump has separately blamed refinery disruptions for higher gasoline prices. He said Ukrainian strikes on Russian refineries and refinery closures in Democratic-led states were contributing to the increase. He also argued that the Strait of Hormuz was no longer the main driver because larger amounts of oil were moving through the route.
A post sharing those remarks was included in the report:
🚨 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… pic.twitter.com/rCtPxHuDcx
— Eric Daugherty (@EricLDaugh) October 5, 2026
Trump had also said the previous month that he asked Ukrainian President Volodymyr Zelensky to stop attacks on Russian refineries.
The potential savings could reach truckers quickly
Patrick De Haan, head of petroleum analysis for GasBuddy, estimated that federal action could save truckers about 60 cents per gallon. That estimate places a possible dollar value on the proposed tax and fuel-access changes.
the White House is floating distributing more dyed diesel. it's the same ULSD with red dye and no taxes, so it could save on-road users ~60c/gal. but farmers already use dyed diesel and are still paying record prices. taxes aren't the problem, supply is.
— Patrick De Haan (@GasBuddyGuy) September 28, 2026
There is also an international effort to add diesel supplies. Trump said Europe had agreed to release a large reserve of diesel. Reuters reported that G7 countries announced last week that they would release 100 million barrels of the fuel.
The White House shared Trump’s statement about the European release:
“Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately…” – President Donald J. Trump pic.twitter.com/SkU8ANK7ev
— The White House (@WhiteHouse) October 2, 2026
The order would not stop diesel exports
American diesel exports have been rising, and the administration has considered restricting shipments overseas. But that is not part of the policy described in the report. The planned order would instead focus on reviewing taxes, expanding access to dyed diesel and encouraging possible fuel-tax relief at the state level.
