VLO, MPC, SUN, PSX Stocks Climb Overnight After Trump Allows Temporary Highway Use Of Dyed Diesel, Defers Federal Fuel Tax

President Donald Trump’s administration signed an executive order on Monday to temporarily allow off-road dyed diesel for highway use and defer the Federal excise tax.

• Under the order, the Treasury Department was directed to defer federal excise taxes on dyed diesel used on highways through the end of 2026, without interest or penalties, while exploring ways to eliminate the deferred liability.
• Analyst Patrick De Haan said in a post on X that the dyed diesel order “sounds big, but most drivers won't benefit.” 
• The National Average price of gas as of Oct. 5 is $4.3653 per gallon, as per data from AAA Fuel, up from an average price of between $2.81 and $2.87 per gallon in January this year.

Shares of Valero Energy Corp. (VLO), Marathon Petroleum Corp. (MPC), Sunoco, Inc. (SUN), and Phillips 66 (PSX) edged higher in the overnight session late on Monday after President Donald Trump’s administration signed an executive order to temporarily allow off-road dyed diesel for highway use and defer the Federal excise tax. 

The move is a bid to lower fuel costs for Americans, who have been grappling with rising energy prices amid the war with Iran that has choked off the critical Strait of Hormuz since the end of February. 

VLO stock was up 0.67% at the time of writing, while MPC stock gained 0.35%. SUN stock and PSX stock were up more than 3% and 1%, respectively. 

What Does The Executive Order Mean?

The National Average price of diesel as of Oct. 5 is $$6.32 per gallon, as per data from AAA Fuel, up from an average price of $3.69 last year. 

Trump’s executive order temporarily expands access to dyed diesel, a lower-tax fuel normally restricted to off-road uses such as farming and construction, as the administration seeks to reduce fuel costs. 

According to the order, the Treasury Department has been directed to defer federal excise taxes on dyed diesel used on highways through the end of 2026, without interest or penalties, while exploring ways to eliminate the deferred liability.

Transportation officials will coordinate with states, industry and labor groups to expand access, while the Agriculture Department will work to ensure farmers in high-demand areas can obtain the fuel, it said, while adding that the administration encourages states to adopt similar policies.

Impact On Diesel Prices: Analyst Take 

Analyst Patrick De Haan said in a post on X that the dyed diesel order “sounds big, but most drivers won't benefit.”

He added that states will still enforce their own rules, and it is not truly tax-free, “and it doesn't add a single gallon of supply.”

In a longer post, De Haan explained that dyed diesel is the same fuel as on-road diesel but is distributed through a smaller supplier and wholesale network. Trump’s order only addresses federal restrictions and taxes, while states still have their own diesel taxes and laws prohibiting dyed fuel for highway use, which the federal order cannot override. He also added that the administration is encouraging states to suspend enforcement, but participation is voluntary. 

“For now, I believe six states have currently eased their dyed diesel rules: Alabama, Louisiana, Nebraska, North Carolina, Oklahoma and Texas. A few others, including Georgia and Ohio, recently went above that and simply are suspending their diesel taxes, making dyed diesel mostly moot. Everywhere else, the fed waiver alone doesn't make dyed diesel legal,” he said. 

De Haan also explained that the order doesn't increase supply, and the current price spike is due to a lack of global supply, driven by continued disruptions in the Middle East, strikes at Russian oil refineries, and declining global inventories. 

The analyst said in a separate comment that he believes that “in a year of inundation with price challenges,” the order does not change much for diesel prices, 

VLO, MPC, SUN, PSX Stocks: Retail Stance

On Stocktwits, retail sentiment around VLO and PSX stocks was ‘bearish’ at the time of writing, while it was ‘neutral’ for SUN and MPC stocks. 

Meanwhile, diesel futures ULSD NY Harbor (HO_F) was trading down at the time of writing amid ‘neutral’ sentiment. 

VLO stock has gained more than 153% in 2026, while MPC stock, SUN stock and PSX stock have surged more than 162%, 37% and 106%, respectively, in the same period.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<