Grand Island, October 6: President Donald Trump signed an executive order on Monday allowing all drivers to use tax-free red-dye diesel.

He signed it on stage at a midterm-election rally in Grand Island, Nebraska. White House aide Natalie Harp carried the order to the podium.

The order defers collection of the federal excise tax of 24.3 cents per gallon on dyed diesel through the end of the year. No interest or penalties will apply. It also asks officials to explore ways to eliminate the deferred taxes entirely.

Trump said the average trucker would save over 100 dollars per fill-up. He said farmers would save millions and grocery prices would fall.

Diesel averaged 6.32 dollars per gallon on October 5, according to AAA. Prices have risen after the US-Israel war on Iran and Ukrainian strikes on Russian refineries.

Experts were sceptical. GasBuddy's Patrick De Haan said taxes are not the problem, supply is. The G7 agreed on October 2 to release 100 million barrels of diesel and crude from reserves.