Texas Declares Statewide Disaster to Combat Record Diesel Prices

Texas is taking drastic measures to ease pain at the pump for its commercial trucking industry. On Monday, Governor Abbott issued a statewide disaster proclamation and announced that the state would temporarily waive restrictions on using dyed diesel fuel on the highway, giving agricultural operators a little extra headroom against high diesel prices.

According to AAA’s gas price tracker, the average price of diesel in Texas is hovering around $6.43 per gallon. That’s actually down about $0.10 from last week, but it’s still 75% higher than the average per-gallon cost a year ago ($3.68).

Dyed diesel is commonly referred to as farm-use or off-road diesel and is not subject to fuel taxes (meant to support road maintenance and construction). It is available to certain commercial (usually agricultural) outfits strictly for use on their properties and is not normally legal to use on-road.

“Texas agriculture and freight run on diesel,” Governor Abbott said in the proclamation. “Record prices put both industries at risk and raise costs for every Texas family. Farmers and truckers can now use dyed diesel on Texas roads, and fuel, crop, and timber loads can move at a higher weight. These steps cut costs on the farm, on the road, and at the store.”

The proclamation “suspends state restrictions and associated penalties so operators can use such fuel on Texas roads,” the governor’s office said; however, it does not waive the underlying diesel fuel tax. Translation? You’ll still be paying full price at your local retail pump. Only those who already qualify for tax-exempt fuel can purchase it; the disaster doesn’t make an exception for non-commercial buyers.

This is good news for Texas farmers, certainly, but it’s little more than a temporary stopgap. With winter just around the corner, diesel fuel is about to feel the annual pinch of heating oil demand. With the global geopolitical situation still in flux, North America could be in for a very expensive holiday season.

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