WASHINGTON, D.C. (RFD NEWS) — President Donald Trump is planning executive actions to lower diesel costs as high fuel prices continue to weigh on farmers during harvest.
According to Politico, Trump is expected to announce the actions Monday during a stop in Nebraska.
The executive order would direct states to increase the availability of tax-exempt, red-dyed diesel used by farmers and other industries. A Treasury Department review of certain diesel taxes is also part of the planned actions.
The planned federal action follows the White House’s rejection of a proposed ban on diesel exports.
The order would also encourage states to waive certain fuel taxes and temporarily ease enforcement of some dyed diesel limitations.
Ten states representing roughly one-third of U.S. diesel sales have already taken steps like reducing state fuel taxes on gasoline and diesel as well as allowing wider use of dyed diesel for agriculture and trucking as of Friday.
As of Monday, the average price of diesel was $6.32 a gallon, according to AAA. That is down 13 cents from the previous week but remains $2.63 higher than a year ago.
U.S. Secretary of Agriculture Brooke Rollins issued a statement on President Trump’s new executive order to provide relief for our farmers and ranchers by lifting taxes on dyed diesel:
According to the USDA, Trump’s executive action is expected to represent approximately $640 million in combined federal and state savings across about 224.6 million harvested acres.
