The US President is betting on tax-free "red" diesel fuel.

Red-dyed diesel fuel is primarily used for agricultural machinery and off-road equipment. The decision to allow its expanded use comes amid rising fuel prices in the US due to the conflict in the Middle East.

President Trump stated that the executive order would "officially abolish the road use-only requirement and allow anyone to purchase tax-free red diesel for any purpose."

Essentially, the red-dyed diesel has the same composition as regular diesel, but is exempt from road fuel taxes. However, the White House announcement accompanying the executive order indicates that this measure has a more limited scope than Trump claimed at the campaign rally.

RG