Gov. Ivey halts enforcement on dyed diesel fuel to aid Alabama farmers
Alabama Governor Kay Ivey directed state law enforcement to stop penalizing the highway use of tax-exempt dyed diesel for 120 days, offering relief to agricultural and timber operators during the harvest season. The state action aligns with nationwide adjustments as the Internal Revenue Service suspended federal tax penalties for selling or using dyed diesel on highways through the end of the year. High diesel costs driven by the war with Iran have prompted multiple governors to ease fuel restrictions to assist trucking and agricultural producers.
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- ✓ Governor Kay Ivey directed the Alabama Law Enforcement Agency to stop enforcing rules on dyed diesel fuel for 120 days starting September 24.
- ✓ The Internal Revenue Service announced on October 14 that it will not impose penalties when dyed diesel fuel is sold or used on highways.
- ✓ Alabama's harvest season runs through November 15.
What changed
The Internal Revenue Service announced a nationwide suspension of federal tax penalties for using dyed diesel on highways through the end of 2026.
Live updates
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Alabama Halts Dyed Diesel Enforcement as IRS Suspends Penalties
Alabama Governor Kay Ivey directed state law enforcement to stop penalizing the highway use of tax-exempt dyed diesel for 120 days, offering relief to agricultural and timber operators during the harvest season. The state action aligns with nationwide adjustments as the Internal Revenue Service suspended federal tax penalties for selling or using dyed diesel on highways through the end of the year. High diesel costs driven by the war with Iran have prompted multiple governors to ease fuel restrictions to assist trucking and agricultural producers.
Why it matters
Dyed diesel is normally restricted to off-road equipment and machinery to prevent tax evasion on public highways. Surging energy prices during the active harvest season placed severe financial strain on agricultural producers and truck operators across the country. State and federal agencies are temporarily lifting enforcement and penalties to ease these operational costs.
What is confirmed
- Governor Kay Ivey directed the Alabama Law Enforcement Agency to stop enforcing rules on dyed diesel fuel for 120 days starting September 24.
- The Internal Revenue Service announced on October 14 that it will not impose penalties when dyed diesel fuel is sold or used on highways.
- Alabama's harvest season runs through November 15.
Still unconfirmed
- High diesel prices are caused by the war with Iran.
What to watch next
- Whether the 120-day enforcement pause in Alabama will be extended beyond its initial timeframe.
- Further guidance from state agencies regarding the expiration of federal penalty relief at the end of the year.
confidence 100%Sources used for this update (9)
- thewesternstar.news — Ivey halts dyed diesel enforcement for 120 days
- www.decaturdaily.com — Local farmers feel sting of high-priced diesel | Local News ...
- www.spragueenergy.com — Dyed Diesel Executive Order Changes Fuel Regulations ...
- edgedairy.com — Dyed diesel: State rules differ for on-road use - edgedairy.com
- regfollower.com — US: IRS suspends penalties on dyed diesel sold/used on
- www.cpapracticeadvisor.com — IRS Halts Penalties for Dyed Diesel Fuel Use for the Rest of ...
- agupdate.com — Diesel cost hits farmers hard - agupdate.com
- www.ttnews.com — Dyed diesel relief leaves carriers with state-by-state rules
- www.wdbj7.com — Governor Spanberger authorizes temporary on-road use of dyed ...
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Alabama Gov. Ivey halts enforcement on dyed diesel fuel
Alabama Governor Ivey has halted enforcement on dyed diesel fuel to aid farmers. This comes after President Trump signed an executive order allowing off-road red-dyed diesel to be used on highways and deferring the federal excise tax through the end of the year. At least 13 states have offered fuel relief to agricultural producers and truckers due to surging energy costs during harvest season.
Why it matters
Farm diesel prices have increased by $2.60 per gallon from last year. State-level rules for fuel, weight, and hours of service exemptions vary. The federal action and state-level relief aim to support farmers and truckers facing high energy costs.
What is confirmed
- President Donald J. Trump signed an executive order allowing off-road red-dyed diesel to be used on highways and deferring the federal excise tax through the end of the year.
- At least 13 states have stepped in to offer fuel relief to agricultural producers and truckers confronting surging energy costs during the harvest season.
- Farm diesel prices sit at an increase of $2.60 per gallon from a year ago.
What to watch next
- Further state-level announcements on fuel relief
- Impact of federal excise tax deferral on farmers and truckers
- Changes in diesel fuel prices
confidence 100%Sources used for this update (8)
- www.irs.gov — Internal Revenue Service | An official website of the United...
- www.irs.gov — Payments | Internal Revenue Service
- www.usa.gov — Making government services easier to find | USAGov
- www.login.gov — The public’s one account for government. | Login.gov
- www.usa.gov — A-Z index of U.S. government departments and agencies
- login.gov — Manage my account - Login.gov
- www.va.gov — VA.gov Home | Veterans Affairs
- govplus.com — GOV+ | All your paperwork on autopilot
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Trump Signs Order Opening Red-Dyed Diesel as States Offer Relief
President Donald J. Trump signed an executive order allowing off-road red-dyed diesel to be used on highways and deferring the federal excise tax through the end of the year. The federal action arrives as farm diesel prices sit at an increase of $2.60 per gallon from a year ago. At least 13 states have stepped in to offer fuel relief to agricultural producers and truckers confronting surging energy costs during the harvest season. State-level rules for fuel, weight, and hours of service exemptions vary.
Why it matters
Soaring diesel prices near record levels have forced truckers and agricultural operators to drastically alter their daily operations to stay in business. State governments previously moved independently to suspend untaxed diesel restrictions, creating a patchwork of localized relief policies before federal intervention. The new executive order aligns federal enforcement with state-level pauses to provide broader financial relief during peak harvest activity.
What is confirmed
- President Donald J. Trump signed an executive order Monday allowing truckers to use red-dyed diesel on highways and deferring the federal excise tax on fuel through year's end.
- Farm diesel prices are up $2.60 per gallon from a year ago.
- At least 13 states have taken steps to provide producers relief from diesel prices.
What to watch next
- Whether additional states will adjust their local weight and hours of service exemptions to match the federal order.
- How long diesel prices remain near record highs as the harvest season continues.
confidence 100%Sources used for this update (7)
- www.agdaily.com — Numerous States Jump in to Offer Farmers Relief From Diesel ...
- www.foxbusiness.com — Trump opens red-dyed diesel to truckers in bid to slash fuel ...
- www.whitehouse.gov — Fact Sheet: President Donald J. Trump Promotes Diesel Affordability
- www.newsbreak.com — New Federal Order Lifts Penalties on "Red" Farm Diesel on ...
- aistsafety.com — Diesel Relief Is Here—but the Rules Change by State - AIST ...
- www.waff.com — ‘Double everything’: North Alabama truckers cope with soaring ...
- news.bloombergtax.com — Nine States Loosen Untaxed Diesel Use as Fuel Prices Surge (1)
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Gov. Ivey pauses dyed diesel enforcement for 120 days
Alabama Governor Kay Ivey directed the Alabama Law Enforcement Agency to halt enforcement of dyed diesel fuel restrictions for 120 days, effective immediately. The directive provides financial relief to the state's agricultural and timber communities as they begin harvest season amid rising fuel costs. Dyed diesel is a tax-exempt fuel typically reserved for off-road equipment, but the pause allows its use to reduce the burden on farmers and timber operators facing high prices. Other states including Texas, Oklahoma, Indiana, and Louisiana have implemented similar diesel fuel relief measures.
Why it matters
Diesel prices in Alabama have reached $6.15 per gallon, straining commercial operations. This action prevents penalties for using tax-exempt off-road fuel in highway vehicles during the busiest operating window of the year.
What is confirmed
- Gov. Kay Ivey directed the Alabama Law Enforcement Agency to halt dyed diesel fuel enforcement for 120 days.
- The enforcement pause is intended to relieve Alabama's agricultural and timber communities during harvest season.
- Dyed diesel is a tax-exempt fuel normally reserved for off-road equipment and machinery.
- The directive took effect immediately.
- Governors in Texas, Oklahoma, and Indiana have also eased diesel fuel restrictions to aid farmers.
Still unconfirmed
- Diesel prices in Alabama have reached $6.15 per gallon.
- Donald Trump is weighing export limits on diesel.
What to watch next
- Expiration of the 120-day enforcement pause
- Further changes to fuel tax exemptions for poultry and greenhouse operations
- Potential federal export limits on diesel fuel
confidence 100%Sources used for this update (21)
- yellowhammernews.com — Ivey halts dyed diesel enforcement for 120 days to ease fuel costs for Alabama farmers
- wiregrassdailynews.com — Ivey Orders 120-Day Dyed Diesel Enforcement Relief
- www.wvua23.com — Ivey directs Alabama Law Enforcement Agency to halt enforcement on dyed diesel fuel to relieve agricultural and timber communities
- wtaw.com — Governor Abbott Issues Declaration Allowing Expanded Use of Dyed Diesel
- www.wsfa.com — Gov. Ivey halts enforcement on dyed diesel fuel to aid ...
- Governor.alabama.gov — Ivey pauses dyed diesel enforcement to aid farmers
- alfafarmers.org — Ivey Halts Dyed Diesel Enforcement, Provides Relief for Farmers
- www.trussvilletribune.com — Gov. Kay Ivey orders temporary halt on dyed diesel fuel ...
- alpolitics.com — Ivey Halts Dyed Diesel Enforcement for 120 Days
- abc3340.com — Governor Ivey Temporarily Eases Diesel Rules Amid Rising Fuel ...
- www.yahoo.com — Gov. Braun again extends suspension of Indiana gas taxes, also suspends diesel fuel restrictions for farmers
- www.kten.com — Texas and Oklahoma ease dyed diesel fuel restrictions
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Alabama and Louisiana Governors Halt Diesel Enforcement
Governors in Alabama and Louisiana have taken executive action to halt enforcement and waive certain limits on dyed, off-road diesel fuel. The orders aim to lower fuel costs and provide urgent relief to agricultural and timber communities as they face high diesel prices right ahead of the harvest. The suspensions directly target the use of dyed diesel, which is typically restricted from highway vehicles, to reduce financial pressure on farmers and loggers during their busiest operating season.
Why it matters
Fuel expenses represent a major overhead cost for agricultural and timber operations, particularly during harvest periods when heavy machinery runs constantly. State leaders frequently use emergency powers to adjust fuel regulations and weight limits to support critical supply chains during economic strain. Similar relief measures help primary producers manage operating budgets when commodity and energy markets experience sharp increases.
What is confirmed
- Gov. Ivey directed the Alabama Law Enforcement Agency to halt enforcement on dyed diesel fuel.
- Gov. Landry declared a state of emergency over high diesel prices ahead of the harvest.
- The executive actions in Louisiana waive some limits on off-road diesel use to lower fuel costs.
What to watch next
- Potential rollout of similar fuel enforcement suspensions in neighboring states
- Updates on harvest season operational cost impacts from agricultural associations
confidence 100%Sources used for this update (5)
- WBRZ — Gov. Landry declares state of emergency over high diesel prices ahead of harvest
- Governor.alabama.gov — Governor Ivey Directs Alabama Law Enforcement Agency to Halt Enforcement on Dyed Diesel Fuel to Relieve Agricultural & Timber Communities
- Successful Farming — Gov. Landry’s Order Waives Some Limits on Off-Road Diesel Use to Lower Fuel Costs
- WSFA — Gov. Ivey halts enforcement on dyed diesel fuel to aid Alabama farmers
- WWLTV.com — Landry declares state of emergency to ease diesel costs for farmers, loggers
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