Trump opens tax-free 'red' diesel to all buyers

WASHINGTON: US President Donald Trump on Monday signed an executive order allowing anyone to buy tax-exempt red-dyed diesel, a fuel normally reserved for farm machinery and other off-road equipment.

He made the decision as surging pump prices tied to the Iran war weighed on his Republican party weeks before the midterm elections.

Speaking at a rally in Nebraska, Trump told supporters the order would "officially waive the off-road requirement and allow anyone to purchase tax-free red-dyed diesel for any reason."

The president admitted he was unfamiliar with the fuel, joking to the crowd: "I don't know what the hell it is, but whatever it is, it's supposed to be very good."

Red-dyed diesel is essentially the same fuel as standard diesel, but it is exempt from highway fuel taxes.