Red Dyed Diesel for Trucks: Federal Order OKs Highway Use to Dec. 31

What happened

Red dyed diesel for trucks is now allowed on the highway, at least for a while. On Monday, Oct. 5, 2026, President Trump signed an executive order on it, CDLLife and FreightWaves reported.

Red dyed diesel is off-road fuel. The red color shows that highway fuel taxes were not paid on it. Normally, running it in a truck on public roads is against the law.

Here is what the order does:

• It allows red dyed diesel on highways through Dec. 31, 2026.
• It defers the federal excise tax on that fuel through the end of the year, with no interest or penalties. Defer means pay later, not never.
• The government will study ways to drop the deferred tax for good, FreightWaves reported. That has not been decided.
• States may choose to stop inspections and waive their own tax, CDLLife reported.

The White House says a driver could save about $60 on a 250-gallon fill. In states that match the order, it says, the savings could reach about $100 per fill.

The reason given is the price of diesel. Global supply is tight, and prices hit records. The federal weekly average was $6.199 a gallon this week. That is 18.3 cents lower than the week before, and the second drop in a row. Two weeks ago it hit an all-time high of $6.529.

What it means for owner-operators

The biggest catch is the map. FreightWaves reported the change only works in states that already allow it: Alabama, Louisiana, Nebraska, North Carolina, Oklahoma and Texas. In most other states, red dyed diesel on the highway is still illegal.

Texas drivers already had part of this. On Sept. 28, Gov. Greg Abbott opened state roads to dyed diesel. We covered it in our story on the Texas dyed diesel emergency order. The new federal order deals with the federal tax side.

If you run interstate, you can cross into a state where that red fuel in your tank is still a problem. FreightWaves also noted that most big truck stops do not sell dyed diesel at all.

OOIDA, the owner-operators group, called the order "minimal relief." It said every $1 jump in the price per gallon costs its members $400 a week.

What to do next

• Know your route. Before you fill with red diesel, check every state on your trip. Outside the six states, do not assume it is legal.
• Ask at the pump. Make sure the station sells it for highway use under the order.
• Keep every fuel receipt. Write down where and when you bought red or clear fuel.
• Plan for the tax. The federal tax is deferred, not erased. Ask your accountant or fuel tax preparer how to report it and whether to set money aside.
• Watch the date. The order ends Dec. 31, 2026, unless it changes.
• Keep your file clean. Our trucking filing guide shows what your authority needs to stay active.

We will keep watching this rule and share what changes.