[Trump Allows Tax-Exempt 'Red-Dyed Diesel' for Highway Use, But Fails to Solve U.S. Diesel Supply Shortage] BlockBeats News, October 7: U.S. President Trump signed an executive order this Monday temporarily allowing tax-exempt 'red-dyed diesel,' originally designated for non-highway uses such as agriculture and mining, to enter the highway transportation market. The move aims to alleviate logistics cost pressures by reducing fuel tax burdens for truck transportation. Currently, regular highway diesel in the U.S. is subject to a federal excise tax of 24.3 cents per gallon, while red-dyed diesel typically enjoys tax-exempt status. Theoretically, if the policy is successfully implemented at the consumer level, the cost of diesel per gallon could decrease by up to 24.4 cents. However, this measure does not increase diesel production; it merely changes the tax and usage rules for the fuel. The U.S. diesel supply continues to face multiple pressures. Refinery utilization rates are at high levels, Russia has restricted exports of refined oil products, and disruptions in refined oil supplies from the Middle East have kept diesel prices elevated. According to data from the American Automobile Association, the nationwide average retail price for highway diesel reached a record high of $6.528 per gallon on September 22 and remained around $6.315 per gallon as of this Tuesday. Meanwhile, red-dyed diesel is primarily distributed through dedicated agricultural and mining channels, and highway truck stops generally lack the necessary storage and refueling facilities. Industry organizations have also warned that if a large number of trucks turn to rural channels to procure red-dyed diesel, it could squeeze the supply of fuel needed for agricultural machinery during the peak North American harvest season. Energy analysts have pointed out that expanding the use of tax-exempt diesel does not change wholesale diesel prices or refinery capacity; at most, it can reduce the tax burden for some end users. The real bottleneck in the U.S. diesel market remains the issue of insufficient supply. [Original Link]