Following a decision to cancel taxes on diesel fuel due to a crisis exacerbated by the situation in the Strait of Hormuz and Ukrainian attacks on Russian oil refineries, President Donald Trump announced a series of new measures. The administration framed the move as a response to a sharp rise in prices that had been building amid those international pressures. The cancellation of taxes and the executive order were implemented amid a sharp rise in prices.
On September 22, the national average price for diesel reached a record high of $6.50 per gallon. This figure marked the highest level ever recorded for the fuel in the United States.
"Between our TOTAL CONTROL of the Strait of Hormuz, and this great announcement on Russian Energy, Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST! Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority." - President Donald J. Trump 🇺🇸
The price surge was driven by the situation in the Strait of Hormuz and strikes on Russian oil refineries by Ukrainian forces. Both factors contributed to the rise in diesel prices. The administration pointed to these external shocks as the primary cause of the crisis that prompted the tax cancellation and the later executive order.
The order also provides a deferral for federal fuel taxes on that diesel.
On Monday, President Trump signed an executive order that temporarily allows the use of dyed 'red' diesel fuel—normally reserved for agricultural and construction equipment—on public roads. The order also provides a deferral for federal fuel taxes on that diesel. The administration lifted these restrictions until the end of the year, citing the sharp rise in prices as the justification for the temporary change.
I have just concluded a highly successful discussion with President Vladimir Putin, of Russia, wherein it was agreed that Russia will immediately supply over 300,000 Tons of Diesel Fuel to the American and Global Marketplace, another 500,000 Tons during the month of November, and 1,000,000 Tons immediately thereafter. Additionally, based on the condition of their Diesel Refineries, Russia will then deliver, within a short period of time, 3,000,000 Tons of Diesel Fuel. Between our TOTAL CONTROL of the Strait of Hormuz, and this great announcement on Russian Energy, Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST! Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority. This is a very big and important announcement. Additionally, it must be understood, that Iran will not have a Nuclear Weapon! Thank you for your attention to this matter. President DONALD J. TRUMP ( TS: Oct 9 2026, 2:46 PM ET )
Dyed diesel, often called 'red' diesel because of the added coloring, is ordinarily restricted to off-road uses such as farming tractors and construction machinery. The executive order explicitly lifts that limitation, permitting the fuel to be used in vehicles traveling on highways and city streets. The measure expands the use of dyed diesel to public roads.
As of October 9, the average price for diesel stood at $6.27 per gallon.
🇺🇸🇷🇺US President Donald J. Trump has just reached a deal with Vladimir Putin for Russia to supply as much as 4.8 million tons of diesel fuel to the US. The cost of that volume of diesel is roughly $5–7 billion. https://t.co/R1oWk0fif5
At a White House event, President Trump remarked that a "big announcement on diesel" was forthcoming. The quote reflects Trump's comment on diesel.
