Gov. Greg Abbott declared a statewide disaster Monday because of soaring diesel prices and a worsening fuel shortage created by overseas wars.
The 30-day disaster declaration, which can be extended indefinitely, allowed Abbott to lift some restrictions on commercial transportation, which he said will alleviate some of the high costs. Diesel fuel is used in agriculture and commercial shipping, so high fuel prices are passed on to consumers in the form of a higher cost of goods at the grocery store.
The declaration expands the use of tinted diesel on Texas roads, suspends Texas’s low-emissions diesel rules up to the federally allowed limit, and increases the weight allowed for fuel, agricultural, and lumber loads. The governor also asked the U.S. Environmental Protection Agency to waive federal requirements for ultra-low sulfur diesel to increase supply.
“Texas agriculture and freight run on diesel,” Abbott wrote in a statement. “Record prices put both industries at risk and increase costs for every Texas family. Farmers and truckers can now use tinted diesel on Texas roads, and fuel, crop and lumber loads can carry more weight. These measures reduce costs on the farm, on the road and in the store.”
Dyed diesel is chemically identical to regular diesel available at gas stations, but it is dyed red and used in off-road agricultural and construction equipment. Because it is exempt from federal and state highway fuel taxes, its use on public roads is generally prohibited and violators are subject to fines for tax evasion, according to state law.
Removing restrictions on the use of dyed diesel could reduce prices by increasing the supply of diesel available for everyday use.
Abbott’s order does not eliminate the underlying fuel tax, which is 20 centers per gallon on untinted gasoline and diesel.
The disaster declaration and governor’s order comes as AAA reports an average diesel price of $5.86 per gallon in Texas. Monday also marks the seventh month since the United States and Israel launched coordinated strikes against Iran, leading to prolonged disruption of Middle East oil and gas exports. The ongoing conflict has led to rising prices of gasoline and diesel around the world.
Diesel cost $3.30 per gallon in Texas in early February.
Affordability has become a central focus of the U.S. election season, heading into the November 3 midterm elections. Abbott and other state Republican officials face a competitive election in a state in which no Democrat has won a victory since 1994.
Abbott’s opponent, Democratic state Rep. Gina Hinojosa, called on the governor to drop the state’s gas tax. Abbott’s office argued that he did not have the option to unilaterally waive the taxes.
The Texas Democratic Party reiterated that position in a statement Monday, calling on Abbott to completely suspend the gas tax and blaming President Donald Trump’s foreign policy for the high prices.
“Abbott must also demand that Donald Trump lift his absurd tariffs and end the unnecessary war that is driving up costs for Texans,” said TDP Executive Director Terri Burke. “Abbott cannot continue to ask working families to shoulder the burden of his political loyalty to Trump while Texans pay the price. »
In 2024, Abbott lifted restrictions on dyed diesel for the final time amid wildfires in The Panhandle.
