happybadger [he/him]
news::: spoiler spoiler Truck stops nationwide were warned to “proceed with caution” Tuesday by a major industry group after President Donald Trump signed an executive order to promote the use of “red dye” diesel fuel.
Red dye diesel is exempt from federal excise taxes because it is intended for farm equipment and other off-road uses.
The order, signed before farmers in Nebraska on Monday night, aims to bring down fuel prices by “temporarily” allowing highway use of red dye diesel fuel, according to a White House statement.
U.S. voters are deeply frustrated by the high price of gas, and the Trump administration is under intense pressure to bring down fuel costs before the Nov. 3 midterm elections.
Monday’s order instructs Treasury Secretary Scott Bessent to “defer certain diesel fuel tax payment obligations and to provide penalty relief to the extent permitted by law.”
It does not waive the federal taxes, because only Congress can eliminate a tax.
Following Trump’s directive, the Energy Marketers of America warned gas stations to “proceed with caution.”
“Whether relief is available, whom it covers, and on what conditions depend on Treasury determinations and guidance not yet issued,” the group said. “Deferral is not forgiveness.”
Moreover, the order does not “resolve EPA or state restrictions” on the dyed variety of diesel fuel, the EMA said.
A White House official emphasized that federal agencies have wide discretion over enforcement actions, telling NBC News that the IRS would announce its determination soon as to whether it will enforce the deferred diesel tax.
But other trucking and gas industry groups sounded a note of caution similar to the EMA’s.
“The White House appears to be trying to encourage the supply chain to move toward selling dyed fuel in non-traditional ways,” the Society of Independent Gasoline Marketers of America and the National Association of Truck Stop Owners said in a note to their members.
“We do not expect most reputable diesel retailers and fuel marketers to do this,” they said. “First, the tax is still owed, so there’s limited upside.”
In addition, “the logistical challenges outweigh any visible upside: Residual dye lingers in tanks and fuel systems.”
For most fuel sellers, “the liability and customer risk outweigh any temporary, uncertain benefit.”
White House spokeswoman Taylor Rogers disputed that characterization of the executive order.
“President Trump’s executive action will quickly cut diesel costs and put money directly back into the pockets of American truckers, saving them over $100 every time they refill at the gas pump,” she told NBC News.
Transportation Secretary Sean Duffy, she said, will “coordinate with states, industry leadership, and labor organizations to ensure access to dyed diesel.”
A group representing independent long-haul truckers also suggested Trump’s move would provide little benefit to its members.
“Allowing the wider use of red-dyed diesel will provide minimal relief. Market stability is essential to bring down costs for the long haul,” said Todd Spencer, president of the Owner-Operator Independent Drivers Association. :::
As far as I'm aware, the red dye is added to catch tax evaders, not because the diesel is lower quality. It's exactly the same except it's red. Non-red diesel has higher taxes because it's meant to tax people who drive on the roads.
Trump signed an executive order on Monday of this week to allow truckers to use red dye diesel in their vehicles until the end of 2026. I agree with the article that it sets a bad precedent and the red dye could linger.
You bet it lingers. I used to run cherry flavored diesel whenever I could get my hands on it but one tank will dye the fuel filter pink, it lingers in fuel/water separators.
This is just robbing Peter to pay Paul.
Trump is desperate for a win before the upcoming election. It's kinda funny to watch him flail because none of this shit is going to work and even if it did at this point it's too late anything he does will take too long to filter through the economy to get seen by voters in their wallets.
Counter point: no us voter ever made a decision based on anything but vibes
that should mean it will take even longer, imo. people aren't going to look at the price index on election day and vote, they're going to think about the vibe of how expensive everything has been recently. Maybe he could manufacture a media win to dull the effect, but I think the Dems have shown conclusively that you can't convince people the economy is different than it is.
My point was I think he's just hoping the last thing people will see first is one of these tweets
The colossus is eating itself.
Incoming headline: Red Dye Diesel Shortage Impacts Farmers.
Its literally just regular lump diesel with red dye. So there's already a shortage. Also, like mentioned in the article, the dye will stain the fuel system and still show up after several non dyed tanks of fuel. This is all intentional because the whole point is to catch highway vehicles trying to dodge the fuel tax. Actually using it now for highway trucks is just asking for a fine in 6 months.
He's going to make them dye it gold
In addition, “the logistical challenges outweigh any visible upside: Residual dye lingers in tanks and fuel systems.”
I love the idea that this is another grift. When the order is rescinded, routine fuel checks will screw over any diesel enjoyer who used it. In Colorado that's a state-level $500-5000 fine, plus a federal fine that's the greater of $1000 or $10/gal.
diesel enjoyer
bottom of the barrel
A group representing independent long-haul truckers also suggested Trump’s move would provide little benefit to its members.
Nobody cares about you, this is just kicking the gas market collapse another day down the road
