Trump Relaxes Dyed Diesel Rules to Aid Farmers

President Donald Trump signed an executive order on October 12, 2026, relaxing restrictions on tax-exempt red-dyed diesel fuel to provide temporary relief to farmers. The move follows a surge in diesel prices, with the national average reaching $6.20 per gallon on October 5—a 67% increase over the previous year. Prices in the Midwest rose by 71%.

The price spikes resulted from global oil supply disruptions caused by a conflict with Iran that began in February and the subsequent closure of the Strait of Hormuz, as well as refinery damage in Russia and the Middle East. Trump announced the relief in Grand Island, Nebraska, stating the measure would save farmers millions and lower the cost of goods.

Federal action follows emergency measures by nearly a dozen governors in the South and Midwest. North Dakota Governor Kelly Armstrong had previously declared a state of emergency on September 29 to expand dyed diesel use for highway vehicles. While industry groups welcomed the order, some reports suggest many farmers had already completed their harvests or already possessed access to the fuel. Matt Perdue, president of the North Dakota Farmers Union, argued the relief was insufficient given that current diesel prices are more than two dollars higher than last year.