President Donald Trump is expected to announce an executive order aimed at reducing fuel prices while stumping for Sen. Pete Ricketts in Nebraska. (Courtesy photo)
President Donald Trump will heed the call of South Dakota's junior senator to suspend the federal gas tax as Americans face elevated fuel prices.
After Sen. Mike Rounds on Friday urged the White House to provide relief to Americans at the gas pump, Trump is expected to announce an executive order that includes a Treasury Department review of nationwide taxes on diesel while directing states to increase the availability of tax-exempt red-dyed diesel, which is used in farming, construction and other industries.
The order will also direct states to consider waive their fuel taxes through the non-enforcement of dyed-diesel limitations.
Politico first reported the expected announcement, which Trump will make while stumping for U.S. Sen. Pete Ricketts in Nebraska. Ricketts is among several incumbent Republicans on Capitol Hill facing highly contested re-election campaigns.
Neither the White House nor Rounds' office immediately responded to requests for comment.
Rounds said last week that suspending the federal gas tax could save South Dakotans as much as 18 cents per gallon on gasoline purchases and 25 cents per gallon of diesel.
Ten states that account for about a third of U.S. diesel sales have already taken steps to allow wider use of dyed diesel, according to the research firm ClearView Energy Partners. Several states have also waived taxes for diesel used in agricultural vehicles.
The moves helped lower the average price of diesel to $6.32 a gallon on Monday, down 13 cents from the week before but still $2.63 higher than a year ago, according to AAA.
Recent moves by Gov. Larry Rhoden, who was unavailable for comment Monday afternoon, have also been aimed at easing fuel costs, particularly for farmers in the midst of harvest.
An executive order signed by the governor last week suspended load-weight limits to allow farmers to haul crops, livestock and other agricultural commodities with fewer trips.
Rhoden also suspended a $25 overweight trip permit while directing the Department of Revenue to monitor fuel supplies and determine if a tax refund to suppliers is warranted if regular diesel needs to be used in farm machinery because of any future shortage of dyed diesel.
"Diesel prices are far too high, and that has an impact on our farmers, especially during harvest. These actions should provide them some relief while they get their crop to market to feed us all,” Rhoden said at the time, also noting that he and his staff are vetting other means within his authority might be available to address fuel prices.
“All options are on the table. We’re taking a serious look at what Washington is doing, as well as other states.”
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