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.
\n\nRed dye diesel is exempt from federal excise taxes because it is intended for farm equipment and other off-road uses.
\n\nThe 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.
\n\nU.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.
\n\nMonday’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.”
\n\nIt does not waive the federal taxes, because only Congress can eliminate a tax.
\n\nFollowing Trump’s directive, the Energy Marketers of America warned gas stations to “proceed with caution.”
\n\n“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.”
\n\nMoreover, the order does…
Original source: https://www.nbcnews.com/business