Red Diesel Rule Waived: Drivers Get Tax Break Until 2026
📡 MarketWatch · 1 min read ·
Part of composite article US and Russia Strike Diesel Deal as IEA Releases 100 Million Barrels to Cool Global Fuel Prices View full article →
The Trump administration has waived rules on red-dyed diesel, allowing highway drivers to use the tax-exempt farm fuel through the end of 2026.
Red-dyed diesel is a cheaper type of fuel normally reserved for farm vehicles and off-road equipment. It is marked with red dye to show it is not taxed for road use.
Under the new waiver, regular highway drivers can now buy and use this fuel legally. The change is meant to lower fuel costs.
However, local tax and other concerns remain unresolved.