Ahead of US midterms, Trump signs executive order to expand access to tax-exempt diesel: What we know

US President Donald Trump has signed an executive order expanding access to tax-exempt diesel as record fuel prices pose a political risk ahead of the November midterm elections, which will determine control of Congress.

US President Donald Trump on Monday (local time) signed an executive order to broaden access to tax-exempt diesel, after announcing the move at a rally in Nebraska.

Trump said the directive would eliminate the requirement restricting tax-free diesel to off-road use, allowing wider purchases of red-dyed diesel, which is commonly used in agriculture and certain off-road vehicles, Reuters reported.

Talking about the waiver, Trump said, "We are not going to need it long, I hope." The announcement comes roughly a month before the US midterm elections, scheduled to take place on 3 November. The report suggests that high diesel prices, which shot up to a record of about $6.50 a gallon last month, are now posing a risk to Trump ahead of the midterms, in which control of Congress is at stake. The US President's Republican Party currently holds a narrow majority in the Senate and House of Representatives.

Diesel prices, crucial for the transportation of goods, have climbed amid the US-Israel war with Iran and Russia's war in Ukraine, as both conflicts have resulted in strikes on refineries in the Middle East and Russia.

This story will be updated with additional details.

About the Author

Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.

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