Abbot’s declaration expands the use of dyed diesel on Texas roads.
What Is Dyed Diesel?
Dyed diesel is chemically the same as regular diesel available at gas stations, but it is tinted the color red and used in off-road farm and construction equipment.
Because it’s exempt from federal and state motor fuel road taxes, typically its use on public roads is prohibited and violators are subject to fines for tax evasion.
Abbott Declares Disaster in Texas Over Diesel Prices
On Monday, September 28, the Texas Tribune reported Abbott Declares Disaster in Texas Over Diesel Prices, Waives Restrictions on Commercial Shipping.
Gov. Greg Abbott declared a statewide disaster on Monday over soaring diesel prices and a worsening fuel shortage created by wars abroad.
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 elevated costs.
The declaration expands the use of dyed diesel on Texas roads, suspends Texas Low Emission Diesel rules to the limit the federal government authorizes and raises the allowable weight for fuel, agricultural and timber loads. The governor also requested the U.S. Environmental Protection Agency to waive federal ultra-low sulfur diesel requirements to boost supply.
“Texas agriculture and freight run on diesel,” Abbott wrote in a statement. “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 governor’s disaster declaration and order comes as AAA reports an average diesel price of $5.86 per gallon in Texas. Diesel was $3.30 per gallon in Texas in early February.
Abbott’s opponent, Democratic state Rep. Gina Hinojosa, called on the governor to waive the state gas tax. Abbott’s office has argued he does not have the ability to unilaterally waive taxes.
The Texas Democratic Party reiterated that position in a statement on Monday, calling on Abbott to suspend the gas tax altogether and blaming President Donald Trump’s foreign policy for the high prices.
“Abbott must also demand that Donald Trump lift his absurd tariffs and halt the unnecessary war that are driving up costs for Texans,” TDP executive director Terri Burke said. “Abbott cannot keep asking working families to shoulder the burden of his political loyalty to Trump while Texans pay the price.”
Why a “Red Diesel Waiver” is Not a Tax Suspension
The core differences between the two policy mechanisms break down across legal, operational, and financial lines:
| Feature | Suspending the Diesel Tax | Abbott’s Red Diesel Waiver |
|---|---|---|
| Legal Mechanism | Legislative action to temporarily change the tax code. | Executive emergency powers suspending the penalties for road use. |
| Who Benefits | Every driver buying clear diesel at any standard highway pump. | Only drivers who can source and purchase off-road dyed fuel. |
| The Tax Status | The 20-cent state tax is wiped out for standard fuel. | The 20-cent state tax remains active; drivers are just using fuel that never had it applied. |
| Federal Conflict | None. | Potential federal violation, as IRS fuel-dying statutes are separate from state authority. |
Where Truckers Actually Get Red Diesel
Because red diesel is legally reserved for construction equipment, generators, and tractors, you cannot pull a 53-foot semi up to a standard highway retail pump and find it.
Truckers trying to utilize this waiver have to source it from specific commercial channels.
- Cardlock Fueling Stations: These are unmanned, automated commercial fueling stations designed for fleets. Networks like the Commercial Fueling Network (CFN) feature designated, separate dyed-diesel pumps alongside highway diesel.
- Agricultural Co-ops and Farm Supply Centers: Local rural co-ops and agricultural supply stores regularly maintain red diesel tanks to service local farmers.
- Bulk Fuel Distributors: Freight companies with their own private yard tanks are purchasing bulk deliveries of red diesel directly from regional fuel marketers to fill their fleets on-site before hitting public roads.
- Select Specialized Truck Stops: A small fraction of standard travel plazas located in heavily agricultural corridors feature standalone off-road diesel lanes, though these are rare compared to standard highway pumps.
The Catch for Truckers
The logistical challenge is that the existing infrastructure for red diesel is optimized for off-road delivery, not high-volume interstate trucking.
Furthermore, legal experts note that while Abbott’s waiver protects truckers from state-level state trooper fines, it does not officially shield them from federal IRS penalties for using dyed diesel on the highway. As a result, many larger commercial fleets are hesitating to switch to red diesel despite the immediate 20-cent per gallon savings.
Q&A on the Red Diesel Declaration
Q: Will Abbott’s declaration help?
A: No, except for very limited local use.
Red diesel isn’t readily available on interstates and truckers are worried about Federal rules on interstates.
What Should Abbott Do?
If Abbott wanted to look serious about doing something he would call the Texas legislation back in session to address the crisis.
Texas holds regular legislative sessions only in odd-numbered years. Because 2026 is an even-numbered year, there is no scheduled regular session.
Under Article 3, Section 40 of the Texas Constitution, the governor holds sole control over when these “special called sessions” happen and what lawmakers are allowed to work on.
Each special session can last for a maximum of 30 days, though there is no minimum time limit
How Much Would That Help?
- Nationally: Through the eyes of most truckers, very little. Long-haul truckers have to pay taxes based on where they drive, not where they fill up.
- Texas Politics: Perhaps quite a bit. At least it would look like Abbot was trying to do something.
Abbott’s opponent, Democratic state Rep. Gina Hinojosa, called on the governor to waive the state gas tax. Abbott’s office correctly argued he does not have the ability to unilaterally waive taxes.
Even though Hinojosa is promoting an illegal executive order, it’s a message that resonates.
Democrats winning the Texas Governorship has a reasonable shot. I will take a look at some polls and go over the odds.
As a tease, Polymarket gives Gina Hinojosa (D) a 25 percent shot.
Nate Silver Gives Abbot a 72.7 percent chance.
I think the Democrat odds are much higher, yet not approaching 50-50. Sentient against Trump is increasing rapidly.
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What’s going on?
So there is not a 20 cent a gallon savings? The state comptroller is saying users of red dye diesel will owe the state 20 cents a gallon.
Big state with Trump problems.
Abbott is similar to the rooster who claimed responsibility for the sun rising in the mornings.
The farmers will love this. They’ll tell the republicans, once again “thank you sir! may I have another?”