The administration is expected to announce changes affecting so-called red-dyed diesel on Monday, according to people familiar with the matter who spoke on condition of anonymity before the announcement.
The Trump administration is preparing to relax restrictions on a tax-exempt type of diesel fuel, in another effort to reduce fuel costs ahead of the November midterm elections.
Red-dyed diesel is a tax-exempt fuel commonly used for purposes such as agricultural and other off-road activities. Its use is subject to restrictions intended to prevent consumers from using the cheaper fuel in vehicles that normally require taxed diesel.
The planned changes would mark another step by President Donald Trump’s administration to address fuel costs as voters prepare to head to the polls for the midterm elections.
The move comes as the administration continues to focus on measures aimed at reducing the cost of essential fuels and easing expenses for consumers and businesses.
