White House considers red-dyed diesel tax relief to cut fuel prices

The White House is considering regulatory relief to allow broader sales of red-dyed diesel, a tax-exempt fuel, as a leading alternative to a diesel export ban aimed at lowering soaring fuel prices. This move could let some buyers avoid the federal fuel tax. The proposal emerged from administration deliberations amid record diesel prices and global supply disruptions, with President Donald Trump backing a ban that faces industry opposition. Officials are also seeking voluntary export limits from refiners, though no final decisions have been made. Farm Belt lawmakers are pressing for action as diesel averages above $6 per gallon, but analysts say the plan does little to address supply imbalances. Several states have already relaxed dyed diesel restrictions.