White House Temporarily Allows Dyed Diesel for Highway Use

Truck drivers and other highway users could get temporary relief from federal penalties for using dyed diesel as the White House moves to reduce fuel costs.

A presidential action signed October 5 directs the Treasury Department to waive federal penalties for highway use of dyed diesel from October 5 through December 31, 2026.

Dyed diesel is normally intended for off-road uses and is not subject to the federal highway diesel tax. The federal diesel tax is 24.4 cents per gallon.

The federal action does not automatically override state fuel-tax laws or restrictions. States would need to take their own action for additional state-level relief.