The US government has authorised the temporary use of tax-exempt diesel fuel intended for off-road vehicles (farm vehicles and machineries) for all on-road vehicles until the end of 2026 in response to tight diesel inventories and elevated fuel prices across the country (US government press release, 05/10/2026).
The measure allows diesel fuel normally reserved for agricultural, construction and industrial applications, commonly known as red-dyed diesel, to be sold for highway use without requiring payment of the federal excise tax. The decision is intended to increase fuel availability ahead of the winter heating season.
According to the administration, the emergency measure applies nationwide and is designed to alleviate supply constraints affecting diesel markets. US diesel inventories have remained below historical averages, while concerns regarding potential export restrictions have eased following the announcement.
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