President Donald Trump signed an executive order on Monday that removes restrictions on the use of tax-exempt red-dye diesel fuel. The move, announced during a midterm election rally in Grand Island, Nebraska, aims to reduce fuel costs for truck drivers and lower grocery prices nationwide.

Red-dye diesel is a type of diesel fuel dyed red to indicate its tax-exempt status and used primarily in off-road vehicles such as farm and construction equipment. Under current regulations, red-dye diesel cannot be legally used in on-road vehicles. The executive order waives these restrictions, allowing any vehicle to purchase and use the fuel without paying taxes.

Speaking at the rally, Trump described the measure as an “unprecedented step to bring down costs” and suggested it could aid Republican candidates in the upcoming November elections. He noted that the adjustment would save truckers more than $100 per fill-up on average and help reduce the price of consumer goods, including groceries.

The order was presented to the president on stage by White House aide Natalie Harp, who handed him the document for signing in front of the assembled audience.

Critics of the policy have raised concerns about potential revenue losses for federal and state governments, as well as possible environmental implications. However, the administration emphasized the immediate economic relief the measure is intended to provide amid rising fuel prices.

The change reflects the administration’s focus on addressing inflationary pressures and supporting key sectors such as transportation and agriculture during a politically significant period ahead of the midterm elections.