President Donald Trump signed an executive order Monday temporarily allowing tax-free red-dyed diesel to be used on highways through the end of 2026 as his administration seeks to lower fuel costs for farmers, construction workers, and other Americans.

“Today I’m announcing another unprecedented step to bring down costs,” Trump told the crowd. “For many years, farm vehicles, construction equipment, and other off-road vehicles have used what is known as red dye diesel.”

“Tonight, I’m going to sign a historic executive order to officially waive the off-road requirement and allow anyone to purchase tax-free red-dyed diesel for any reason,” Trump said before asking executive assistant Natalie Harp to bring the order onstage.

“I’ll sign it right here!” Trump declared before signing the order.

The White House said the federal diesel excise tax is 24.4 cents per gallon, meaning the temporary relief could save approximately $60 on a 250-gallon fill. Savings could exceed $100 per fill in states that adopt similar measures, according to the administration.

Under the order, the Treasury secretary, in consultation with the Secretary of War, is directed to defer the federal excise tax imposed on highway use of dyed diesel through the end of 2026 without interest or penalties. The order also directs officials to “explore pathways to eliminate the obligation to pay the deferred taxes.”

Federal officials are additionally instructed to coordinate fuel access and encourage states to take similar action.

Red-dyed diesel is normally reserved for off-road uses such as agriculture, construction and heating and is not subject to the same federal and state highway fuel taxes. The red dye allows authorities to identify the fuel and enforce penalties and back taxes when it is used illegally on public roads.

The White House attributed elevated diesel prices and constrained global supplies to the Russia-Ukraine war and insufficient refining capacity. The administration also criticized “Democrat-led States that chose to shut down their refineries in the name of ‘Green Energy’ policies.”

Agriculture Secretary Brooke Rollins welcomed the move, while Vice President JD Vance said the order was another example of Trump moving quickly to address rising costs.

“Another example of President Trump acting quickly to tackle an urgent issue,” Vance said. “In this administration, we’re fighting every day to help hard-working Americans, especially our farmers.”

Trump also credited Nebraska Gov. Jim Pillen, Sen. Pete Ricketts and Iowa gubernatorial candidate Zach Lahn with helping advance the diesel relief measure.

“A lot of senators would not have been able to do what Pete was able to do,” Trump said of Ricketts, before also recognizing Lahn.

Lahn later said he had proposed the relief during a conversation with Vance.

Trump also used the rally to praise Pillen and Ricketts, telling them the action “should absolutely assure your election” and saying, “You two guys were great. You stuck with us.”

The executive order is set to provide temporary relief through the end of 2026 while the administration explores whether the deferred federal taxes can ultimately be eliminated.