Trump Administration Temporarily Expands Permitted Use of Dyed Diesel Fuel

Why it matters locally: South Dakota's agricultural sector, a key industry for the state, could see a direct impact from the temporary expansion of dyed diesel fuel use. Farmers utilizing off-road vehicles for their operations may experience changes in fuel costs and availability due to this federal policy shift.

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.