Trump Administration Temporarily Expands Permitted Use of Dyed Diesel Fuel

Why it matters locally: This temporary policy change could reduce fuel costs for Tennessee's agricultural and construction sectors by allowing them to use lower-taxed dyed diesel on public roads, potentially impacting their operational expenses.

WASHINGTON – The Trump administration has implemented a temporary change allowing the use of dyed diesel fuel on highways. This fuel is typically designated for off-road vehicles, such as those used in farming and construction. Historically, regulations have limited dyed diesel to specific uses, primarily in agricultural and construction machinery that operates off public roadways. Users do not pay federal excise taxes on this type of fuel. Undyed diesel, which motorists use on highways, includes these taxes in its price. Observers have noted that this temporary policy shift could affect the price of diesel fuel for consumers. The administration has not specified the duration of this temporary change or provided further details regarding its implementation.