Ahead of US midterms, Trump signs executive order to expand access to tax-exempt diesel: What we know

US President Donald Trump on Monday (local time) signed an executive order to expand access to tax-free diesel after announcing the move at a rally in Nebraska.

Trump said the directive would remove a requirement restricting untaxed diesel to off-road use, allowing for broader purchases of red-dyed diesel commonly used in agriculture and some off-road vehicles, Reuters reported.

Trump signs executive order ahead of midterm: What we know

Speaking about the waiver, Trump said, “I hope we don’t need it for a long time.” The announcement comes about a month before the US midterm elections, which are scheduled to be held on November 3.

According to an executive order issued by the White House, the Treasury Secretary, in consultation with the head of the Pentagon, was instructed to “delay the payment of the federal excise tax imposed on the use of dyed diesel fuel on the road for the remainder of the year without interest or penalty and to explore avenues to eliminate the obligation to pay the deferred taxes.”

Further, the order also directs the Secretary of Agriculture to “provide access to dyed diesel for farmers in areas of high demand” and asks the Secretary of Transportation to coordinate with states, industry leaders and unions on access to dyed diesel.

US diesel prices are rising

Diesel prices, crucial for transporting goods, have risen amid the US-Israeli war with Iran and Russia’s war in Ukraine, as both conflicts have resulted in strikes at refineries in the Middle East and Russia.

The report suggests that high diesel prices, which shot up to a record $6.50 a gallon last month, now pose a risk for Trump ahead of the midterms, in which congressional control is at stake. The Republican Party of the US President currently holds a narrow majority in the Senate and the House of Representatives.

This story will be updated with more details.