Texas declares disaster as soaring diesel prices hit farmers and truckers

Texas has declared a diesel emergency with farmers and truckers under pressure

Texas Gov. Greg Abbott has declared a statewide disaster as diesel prices climb sharply and concerns grow over the cost of moving goods. The emergency order targets industries that rely heavily on diesel, particularly agriculture and commercial freight.

The declaration temporarily changes several rules affecting diesel use and transportation. It allows dyed diesel on Texas roads and provides greater flexibility for certain fuel, agricultural, and timber shipments. The emergency period lasts 30 days, although it can be extended.

Texas diesel prices have climbed far above last year’s level

AAA data showed Texas’ average diesel price at $5.86 per gallon on Monday, Sept. 28. That compared with about $3.17 a year earlier and $3.30 in early February, showing how quickly fuel costs changed for businesses that depend on diesel.

Texas was below the national average at that point, with diesel averaging about $6.45 per gallon nationwide. Even so, the sharp increase created a major cost challenge for operators whose businesses depend on frequent fueling and long-distance transportation.

Texas is giving freight operators more room to keep essential shipments moving

The emergency order is not limited to fuel access. It also targets the movement of products that depend on reliable trucking, including agricultural goods, timber, and fuel. By changing certain transportation requirements, Texas is trying to reduce obstacles for commercial shipments while operators face unusually high diesel costs.

That approach matters because higher transportation expenses can affect more than just trucking companies. Farmers, suppliers, and businesses that depend on regular freight movements can all face added costs when moving products becomes more expensive or complicated.

The fuel may look different, but its chemistry is not

Dyed diesel is essentially the same type of diesel fuel as clear diesel, but it is treated differently for tax and road-use purposes. The dye makes the fuel easy to identify and helps distinguish tax-exempt fuel from fuel normally allowed in vehicles traveling on public roads.

Red-dyed diesel is commonly used for off-road equipment, including farm machinery, construction equipment, generators, and some heating applications. Under normal circumstances, using dyed diesel in an on-road vehicle can result in significant penalties.

Little-known fact: Federal rules require tax-exempt dyed diesel to contain Solvent Red 164 at a specific concentration so the fuel can be identified during inspections.

The Texas order does not erase the taxes tied to diesel use

The emergency declaration changes how certain fuels can be used during the temporary period, but it does not simply eliminate all diesel tax obligations. That distinction is important for operators because the fuel’s normal tax treatment and the temporary state rules are separate parts of the policy.

Javier Blas estimated that the federal excise tax alone amounts to 24.4 cents per gallon, with another 20 cents attributable to the Texas state tax. His estimate illustrates the potential financial difference, while the proclamation itself does not suspend the underlying fuel tax liability.

Little-known fact: Off-road diesel is also used at construction sites, rail operations, and electric-power facilities, not just on farms.

The emergency order could cut paperwork for some Texas freight operators

Some of the changes concern permits rather than fuel prices themselves. Texas is suspending certain state oversize and overweight permitting requirements for qualifying vehicles carrying fuel, agricultural products, and timber during the emergency period.

That can remove a regulatory step for covered shipments that would normally require additional authorization. The change is limited to the products and vehicles included in the proclamation, so it does not mean every oversized or overweight truck can bypass Texas permitting requirements.

Some Texas freight loads can reach 95,000 pounds

Under the temporary rules, qualifying vehicles carrying fuel, agricultural products, or timber can operate at a gross weight of up to 95,000 pounds. That represents a significant change from the normal restrictions affecting commercial transportation.

The order also lifts certain state permitting requirements for oversized and overweight vehicles carrying those products. The changes apply specifically to the categories covered by the declaration, rather than creating a blanket increase in weight limits for every truck traveling through Texas.

Farmers may not get the same benefit from cheaper dyed diesel

The dyed-diesel change does not solve every fuel problem facing Texas agriculture. Farmers already commonly use dyed diesel for off-road equipment, meaning they were already able to access the fuel under the normal rules.

GasBuddy petroleum analyst Patrick De Haan said farmers are still facing high prices despite using dyed diesel. He assessed that supply and demand conditions, rather than fuel taxes alone, are driving the current pressure on diesel prices.

Reports of empty pumps have raised questions about supply

Reports of diesel stations running out of fuel have appeared on social media in Texas, California, and Florida. One post showed an out-of-diesel notice at a North Texas station, while another reported a similar situation at a station in Orlando.

Those reports have not been confirmed as evidence of a nationwide diesel shortage. De Haan said isolated station outages should not automatically be treated as a broader supply collapse, describing the market instead as tight and expensive.

Texas is asking the EPA for another major diesel change

Abbott has also requested federal action regarding ultra-low-sulfur diesel requirements. The proclamation suspends Texas Low Emission Diesel rules to the extent allowed by the Environmental Protection Agency, while the governor seeks additional federal flexibility.

The proposal has raised a separate concern involving modern diesel engines. De Haan warned that allowing higher sulfur levels could clog filtration, catalyst, and diesel exhaust fluid systems over time, potentially reducing performance and creating mechanical problems.

Texas is not the only state trying to respond to fuel costs

Fuel prices have pushed other states to adopt temporary changes of their own. Georgia Gov. Brian Kemp suspended the state’s motor fuel excise tax for 30 days, with the measure taking effect Tuesday, Sept. 29.

Georgia’s motor fuel excise tax is 33.3 cents per gallon for gasoline and 37.3 cents per gallon for diesel. The approach differs from Texas, where the emergency measures focus more heavily on fuel-use rules and commercial transportation requirements.

California is taking a different approach to fuel costs

California has also taken temporary action as energy costs rise. Gov. Gavin Newsom waived certain California Air Resources Board gasoline transition dates, allowing the state to move to a cheaper winter-blend gasoline earlier than normally scheduled.

The contrast shows how states are using different regulatory tools to address fuel pressures. Texas is changing diesel rules for transportation and commercial operators, while California’s move focuses on gasoline requirements and the timing of seasonal fuel changes.

The diesel crisis is exposing different pressures across the country

Diesel prices vary sharply across the United States, with California at $8.39 per gallon, Washington at $7.42, and Hawaii at $7.15, according to the report. Seventeen states were above the national average of $6.45 per gallon.

Texas had the lowest statewide average in the figures, followed by Oklahoma at $5.93 and Louisiana at $5.95. The wide gap between states highlights why governors are pursuing different temporary measures as fuel markets remain under pressure.

Could higher diesel costs keep squeezing truckers and the businesses that rely on them? See how soaring fuel prices are affecting the trucking industry.

Texas has given operators temporary flexibility, but the fuel pressure remains

Texas has responded to the diesel situation with a set of temporary measures affecting fuel use, freight movement, and certain regulatory requirements. The declaration gives covered businesses additional flexibility, but it does not guarantee that diesel prices will fall or that supply concerns will disappear.

The emergency period is set for 30 days and can be extended, leaving the state with another decision if elevated fuel costs continue. For farmers, truckers, and other diesel-dependent businesses, the bigger question is how long these pressures will last after the temporary rules expire.

Could rising diesel prices be creating new problems at fuel stations? See how Florida stations are dealing with diesel theft as costs climb.

How do you think Texas should respond if diesel prices remain elevated? Share your thoughts.

This slideshow was made with AI assistance and human editing.

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