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.
asserted
Trump → warn → fuel
Red dye diesel is exempt from federal excise taxes because it is intended for farm equipment and other off-road uses.
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it → intend → road
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.
uncertain
order → sign → 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.
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administration → frustrate → 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.”
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order → instruct → law
It does not waive the federal taxes because only Congress can eliminate a tax.
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Congress → waive → tax
Following Trump’s directive, the Energy Marketers of America warned gas stations to “proceed with caution.”
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Marketers → follow → caution
“Whether relief is available, whom it covers, and on what conditions depend on Treasury determinations and guidance not yet issued,” the group said.
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group → cover → determinations
Moreover, the order does not “resolve EPA or state restrictions” on the dyed variety of diesel fuel, the EMA said.
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EMA → resolve → fuel
Other trucking and gas industry groups sounded a similar note of caution.
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groups → sound → caution
“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 National Association of Truck Stop Owners said in a note to their members.
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Society → appear → members
“We do not expect most reputable diesel retailers and fuel marketers to do this,” they said.
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they → expect → this
“First, the tax is still owed, so there’s limited upside.”
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tax → owe → ?
Additionally, “the logistical challenges outweigh any visible upside: Residual dye lingers in tanks and fuel systems.”
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dye → outweigh → tanks
For most fuel sellers, “the liability and customer risk outweigh any temporary, uncertain benefit.”
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liability → outweigh → benefit
The White House did not immediately reply to a request for comment.
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House → reply → comment
A group representing independent long haul truckers also suggested Trump’s move would provide little benefit to its members.
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move → represent → members
“Allowing the wider use of red-dyed diesel will provide minimal relief.
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Allowing → allow → relief
Market stability is essential to bring down costs for the long haul,” said Todd Spencer, president of the Owner-Operator Independent Drivers Association.
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Spencer → bring → Association
Since the war with Iran began, the price of diesel has surged from $3.76 per gallon to $6.32 as of Tuesday, a nearly 70% increase.
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price → begin → increase
The Iran conflict is not the only conflict contributing to diesel’s skyrocketing price.
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conflict → contribute → price
A recent escalation of the Ukraine-Russia war has included strikes by Ukrainian drones on Russian refineries.
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escalation → include → refineries
Traditionally one of the world’s large diesel exporters, Russia has responded to the attacks by imposing a diesel export ban through at least the end of October.
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Russia → respond → October
Trump has urged Ukrainian President Volodymr Zelenskyy to halt strikes on Russia’s diesel infrastructure.
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Trump → urge → infrastructure
“Mr. Zelenskyy has to do one thing.
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Zelenskyy → have → thing
He has to stop knocking out diesel fuel in Russia,” Trump told reporters in early September.
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Trump → have → September
Don’t hit diesel fuel, because that’s hurting the world.”
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that → hit → world
Oil prices also remain sharply elevated since the beginning of the year.
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prices → remain → year
Brent crude oil, which on Tuesday night traded above $101 per barrel, is up more than 66% since the start of the year.
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which → trade → year
The Aporia
