Nevada Truckers Advised to Avoid Dyed Diesel Despite Trump Order

President Donald Trump signed an executive order on Monday, deferring diesel taxes and permitting the use of tax-free, red-dyed diesel on American highways through the end of the year. While the order aims to provide immediate financial relief to the trucking industry, Nevada truckers have been advised to avoid using the dyed fuel until further federal guidance confirms its legality on state roads.

Nevada Trucking Association cautions against immediate use

The Nevada Trucking Association is currently awaiting clarification from the Treasury Department regarding the implementation of the executive order. The dye allows law enforcement to identify fuel that has not been taxed for highway use.

We’re still waiting on guidance from the Treasury to really know what this means and what its impact is.

Paul Enos, CEO of the Nevada Trucking Association

Enos noted that because the executive order specifies the taxes are only deferred, drivers could still be held liable for the taxes if the Internal Revenue Service decides to enforce them at a later date. He emphasized that the current fuel supply infrastructure remains unchanged, as all diesel currently moving through national pipelines is clear, with the red dye applied by wholesalers only when the fuel is designated for non-taxed purposes.

Rising fuel costs strain independent operators

The push for tax relief comes as diesel prices hover near record levels. According to AAA, the average price for a gallon of diesel in Reno is $6.87, representing a 43-cent increase over the previous month. Nationally, the average price has climbed to $6.30 per gallon, outpacing the cost of unleaded gasoline, which averages $5.76.

Jim Frackelton, a Georgia-based driver, reports spending approximately $300 daily on fuel. Russell Shannon, a driver with 14 years of experience, stated that the high cost of fuel, combined with truck maintenance expenses and low load rates, has made his goal of becoming an owner-operator difficult to achieve.

I’ve been driving for 14 years. I want to be an owner-operator, but ain’t no way I can afford the fuel to do so.

Russell Shannon, truck driver

Diesel tax deferral offers substantial savings for truckers

The financial impact of the tax deferral could be substantial for those who qualify. According to the Nevada Trucking Association, a typical 8,000-gallon delivery of diesel to a terminal would result in savings of $1,920. While the executive order directs the Secretary of the Treasury to investigate methods for eliminating these deferred taxes entirely, there is no guarantee that the costs will be permanently waived.

More on this story: Texas Governor Declares State of Emergency Over Diesel Fuel Shortage · Trump Administration Pressures Europe to Release Diesel Reserves to Lower Prices

Anything that helps us on our bottom end, you know, that’s going to be better for us.

Jim Frackelton, truck driver