Nebraska Expands Use of Red Diesel for Highway Transport Amidst High Fuel Costs

Lincoln & Hastings Kearney, NE, October 7, 2026 —

Governor Jim Pillen has announced an expansion in the use of tax-exempt, red-dyed diesel fuel for highway transport within Nebraska. This decision, which follows an executive order previously issued by President Trump, is intended to provide financial relief to truckers facing elevated fuel expenses.

The measure permits the use of red-dyed diesel, typically designated for off-road agricultural and industrial purposes, for vehicles operating on public roads. This allowance is specifically aimed at mitigating the impact of high fuel costs on the trucking industry.

Under the directive, state penalties previously associated with the use of this type of diesel fuel on public highways will be suspended. The expanded access to tax-exempt red diesel is set to remain in effect until December 31st. The exact date of implementation following the initial executive order from President Trump was not specified in the information provided.

This initiative seeks to offer a cost-saving option for truckers by allowing them to utilize a fuel that is not subject to state taxes when used for highway transport during the specified period. Further details regarding the specific terms or any limitations beyond the end date were not immediately available.

Story summarized from the original created by Danielle DaSilva on www.klkntv.com, see more information here.