Texas Gov. Greg Abbott declared a statewide disaster on Sept. 28 to address soaring diesel prices, which have reached an average of $5.90 per gallon in the state, according to the American Automobile Association (AAA). The proclamation allows for temporary measures to increase diesel supply and reduce costs for industries reliant on the fuel.
Abbott’s disaster declaration enables the expanded use of dyed diesel on Texas roads, suspends state Low-Emission Diesel rules to federal standards, and raises allowable weight limits for fuel, agricultural, and timber loads. The governor also requested a waiver from the U.S. Environmental Protection Agency (EPA) to relax federal ultra-low sulfur diesel requirements.
The average diesel price in Texas has risen $2.70 per gallon compared to the same period last year, while the national average stands at $6.45 per gallon. Abbott stated in a release that record prices threaten Texas agriculture and freight industries, which depend on diesel, and ultimately increase costs for consumers.
Key Policy Changes
The disaster declaration includes three primary adjustments to state regulations:
Dyed Diesel Use on Public Roads
Dyed diesel, typically reserved for off-road agricultural and construction equipment, is chemically identical to standard diesel but marked with red dye and exempt from motor-fuels taxes. The state usually prohibits its use on public roadways to prevent tax evasion. Abbott’s order temporarily lifts this restriction, allowing dyed diesel to be used on highways. Industry representatives note that dyed diesel performs identically to clear diesel in engines, though it may stain fuel tanks and hoses.Suspension of State Low-Emission Diesel Rules
The proclamation suspends Texas’ Low-Emission Diesel regulations to the maximum extent permitted under federal environmental standards. This move is intended to increase diesel supply by reducing compliance burdens on fuel producers.Increased Weight Limits for Loads
The order raises allowable weight limits for fuel, agricultural, and timber transport vehicles. Abbott’s office stated this would reduce logistical costs for industries critical to the state’s economy.
Economic Impact and Industry Response
The diesel shortage and high prices have disproportionately affected sectors like farming and trucking, where fuel costs directly influence operational expenses. Abbott emphasized that elevated prices raise costs for Texas families through higher prices for groceries and goods transported by diesel-dependent supply chains.
The disaster declaration is a 30-day measure that can be extended indefinitely. While the order does not waive the state’s 20-cent per gallon fuel tax, it aims to lower prices by expanding supply through regulatory flexibility. The EPA has not yet responded to Abbott’s request for a waiver of federal ultra-low sulfur diesel requirements.
Background: Diesel Price Trends
Diesel prices in Texas have fluctuated in recent weeks, peaking at an average of $6.00 per gallon before dropping slightly to $5.90. Nationally, prices have mirrored Texas’ trend, with the U.S. average reaching $6.45 per gallon on Sept. 28. AAA data shows both state and national prices are approximately $2.70 higher than one year ago, reflecting broader market pressures linked to global supply constraints and geopolitical factors.
The governor’s actions follow calls from agricultural and transportation groups for state intervention to mitigate the financial strain on businesses reliant on diesel fuel. No further details were provided on enforcement mechanisms for the expanded use of dyed diesel or potential penalties for violations during the disaster period.