Washington, October 6: President Trump's new executive order targets red-dye diesel. Here is what the fuel is and what the order changes.

Red-dye diesel is the same as normal diesel. It is dyed red to mark it as exempt from highway taxes. It is normally sold tax-free only for off-road use, such as farm tractors and construction equipment.

The federal diesel tax is 24.3 cents per gallon. It funds the Highway Trust Fund, which pays for road construction and mass transit. State taxes average another 35.5 cents per gallon.

The order lets any driver buy dyed diesel for highway use. It defers the federal excise tax through the end of the year, with no interest or penalties. It also asks officials to explore eliminating the deferred taxes entirely.

The White House says savings could top 100 dollars per truck fill-up if states match the move. Experts caution that supply, not taxes, is driving high prices. Diesel averaged 6.32 dollars per gallon on October 5.