No. Not even close. For new users of off-road diesel (red dyed diesel), Trump’s October 5, 2026 executive order, only defers the 24¢ of federal taxes, but does not eliminate it. That means that if the IRS cannot find a waiver to this tax, the tax may still come due. The IRS has just 5 days to find a justification for any actual elimination of the tax.
This executive order may actually have a deleterious effect on farmers who already use off-road diesel and now must compete with transportation vehicles for the limited supply of dyed diesel.
Finally, the 24¢ of federal taxes subject to this executive order, about 4% of the total cost per gallon of diesel, pales in comparison to state diesel taxes which can be as high as 74¢ per gallon. The 24¢ also pales in comparison to the total increase in diesel prices since the start of the Iran war which is $2.56.
In the end, this executive order is more about show than substance.