Reuters reports the White House is weighing expanding use of red-dyed diesel —
fuel typically exempt from most federal fuel taxes — to help blunt recent diesel
price spikes. The measure could allow more consumers to use red-dyed diesel,
normally restricted to non‑road uses such as agriculture, and largely exempt
from the 24.4¢/gal federal highway fuel tax on regular on‑road diesel. Officials
are reviewing the option as an alternative or complement to diesel export limits
and assessing whether loosening rules would lower fuel costs for farmers,
trucks and businesses. GasBuddy oil analyst Patrick De Haan said farmers
already use tax‑exempt red‑dyed diesel, and permitting truckers to use it would
reduce tax burdens but would not increase diesel supply or meaningfully lower
prices. U.S. retail diesel averages have topped $6/gal, sustaining cost pressure
on farmers, hauliers and companies.
