Trump wants to reduce the cost of fuel as the midterms loom - will it work?
The price of fuel has soared as the cost of living emerges as a key issue for millions of Americans.
By BBC News
Donald Trump has signed an order allowing wider use of tax-exempt red diesel in an attempt to cut soaring fuel costs in the United States ahead of November’s midterm elections.
The measure, signed at a campaign rally in Grand Island, Nebraska, permits road users including truckers to use red-dyed diesel, which is normally reserved for off-road purposes such as farming and construction.
Red diesel is cheaper because it is exempt from federal and state fuel taxes. The federal diesel tax is 24.4 cents per gallon, meaning the change could reduce costs for drivers newly allowed to use the fuel.
Trump said the typical trucker could save more than $100 each time they filled their tank. He also argued that lower transport costs would help reduce the price of goods, including groceries.
The move comes as diesel prices have risen sharply. Data from AAA put the average price at about $6.31 a gallon, around $2.63 higher than a year earlier.
Trump’s order is temporary. The wider use of red diesel is permitted through the end of the year, while the administration has also directed officials to consider deferring collection of the federal highway diesel tax.
The potential savings are smaller than the overall increase in fuel prices. Analysts said the tax change could remove nearly 25 cents a gallon, but would do little to address wider supply problems linked to the conflict in Iran.
The order also faces practical limits because state fuel taxes and rules may still apply. Trump has separately urged states to take action, while a permanent suspension of federal fuel taxes would require approval from Congress.
The midterm elections are due to take place on 3 November, with fuel and the wider cost of living weighing on voters.