Federal Order Eases Off-Road Diesel Restrictions
Alabama Farmers Federation praised a recent executive order by President Donald Trump to provide tax relief on off-road diesel fuel, also called dyed diesel due to a red hue that allows law enforcement to monitor use.
“We appreciate President Trump joining Alabama Gov. Kay Ivey in allowing dyed diesel fuel to be used without penalty for highway use,” said Federation President Jimmy Parnell, referencing Ivey’s late-September directive to halt enforcement on dyed diesel through Jan. 21. “With about a dozen states easing enforcement of off-road diesel rules, President Trump’s executive order provides consistency and ensures farmers and timber producers will not be penalized when they cross state lines to market products.”
The executive order directs the Internal Revenue Service to suspend penalties when dyed diesel fuel is sold for use or used on the highway from Oct. 5-Dec. 31. It also instructs secretaries of Agriculture, Treasury and War to determine if federal excise taxes on diesel fuel can be deferred without interest or penalty during the same period and explore avenues to forgive deferred payments. Secretary of Agriculture Brooke Rollins will also “ensure adequate distribution of dyed diesel for (agricultural) use in high-demand areas.”
The announcement is welcome news during harvest, farmers’ busiest season for fuel use. Highway diesel prices have surged past $6 as global supply has tightened.
The Trump Administration has also waived hours of service rules in recent weeks, allowing truck drivers handling gasoline and diesel to drive additional hours. Trump announced a deal with Venezuela, securing 65 billion barrels of oil, and successfully negotiated with Europe to release 100 million barrels of refined diesel from strategic reserves.