President Donald Trump signed an executive order on Monday to expand access to tax-exempt diesel that he unveiled from a rally stage in Nebraska.
High diesel prices, which shot to a record of about $6.50 a gallon last month, are a risk to Trump ahead of the November 3 midterm US elections in which control of Congress is at stake. Trump's Republican Party currently holds a narrow majority in the Senate and House of Representatives.
Trump said the directive will waive the off-road requirement for tax-free diesel and allow anyone to buy the red dye diesel fuel that is used by the agriculture industry and by some off-road vehicles.
"We are not going to need it long, I hope," Trump said of the waiver.
The order released by the White House directs the treasury secretary, in consultation with the Pentagon chief, "to defer payment of the federal excise tax imposed for on-road use of dyed diesel fuel for the remainder of the year without interest or penalties, and to explore pathways to eliminate the obligation to pay the deferred taxes."
It also directs the US agriculture secretary to "ensure farmers' access to dyed diesel in high-demand areas" while asking the transportation secretary to coordinate with states, industry leadership, and labor organizations on access to dyed diesel.
G7 countries announced last week that they would release 100 million barrels of diesel, after pressure from Trump who had considered banning US exports of the fuel. But it was not clear how much of that release would be entirely new supplies or compliance with a global agreement in March.
Trump's approval rating held at a record-low 32% in recent days, according to a Reuters/Ipsos poll completed on Monday, with Americans most concerned about the high cost of living, spurred by soaring gasoline and diesel prices due to the US war on Iran.
