US widens tax-exempt diesel use, White House says
The White House estimates that temporarily expanding access to fuel normally reserved for off-road use will save farmers and truckers 24.4 cents per gallon.

The White House estimates that temporarily expanding access to fuel normally reserved for off-road use will save farmers and truckers 24.4 cents per gallon.

The White House says a recent executive order temporarily allows wider use of tax-exempt red-dye diesel to cut costs for US farmers and truckers, according to a Guardian feature published on 22 October.
The fuel is normally reserved for off-highway use. It is exempt from federal excise taxes—taxes charged on particular goods—because it is intended for farmers and off-road machinery. Red dye distinguishes it from regular diesel.
Analysis
The White House puts the saving at 24.4 cents per gallon, or about $60 on a 250-gallon fill-up. The duration of the temporary expansion and the precise rules on who can use the fuel remain unclear.
Ed Hirs, an energy fellow at the University of Houston, disputes the benefit for farmers. He told the Guardian that expanding access would give farmers more competition for their fuel supplies and raise the prices they pay.

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