US President Trump has signed an executive order temporarily allowing tax-free red dye diesel to enter the road transportation market in order to reduce logistics costs. Ordinary highway diesel in the United States is subject to a federal consumption tax of 24.3 cents per gallon, while red dye diesel is exempt from taxes, theoretically reducing the cost by 24.4 cents per gallon. This measure did not increase diesel production, and the lack of red dye diesel storage facilities at highway truck stations makes it difficult to solve the shortage of diesel supply in the United States. The average retail price of diesel on highways in the United States reached $6.528 per gallon on September 22, and was about $6.315 on Tuesday of this week. Industry organizations warn that this move may squeeze the supply of agricultural machinery oil during the peak autumn harvest period.
