Texas Allows Tax-Exempt Diesel To Be Used On Public Roads Due To High Prices… But There’s A Catch

Diesel fuel
Image credit: holgers.pictures / Shutterstock.

Texas is temporarily relaxing some of its diesel rules as fuel prices remain unusually high, including a restriction that normally keeps red-dyed diesel off public roads. That sounds like an opportunity for diesel drivers to save some serious money, but there’s an important catch.

Dyed diesel is generally intended for off-road uses such as agriculture and isn’t subject to the same motor-fuel taxes as highway diesel. Texas normally prohibits using that untaxed fuel on public roads, with the red dye making it easier for authorities to identify.

Governor Greg Abbott changed that on September 28 by issuing a statewide disaster proclamation suspending state restrictions and associated penalties for using dyed diesel on Texas roads. The move comes after Texas diesel prices reached a record average of nearly $5.98 per gallon earlier in September.

That doesn’t mean every Texan with a diesel pickup can suddenly fill the tank with cheaper farm fuel. The governor’s office says the proclamation does not waive the underlying fuel tax, so the change mainly benefits operators already entitled to purchase tax-exempt dyed diesel.

Texas Is Temporarily Relaxing The Rules

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File Photo. Image Credit: F.T.Photographer / Shutterstock

Dyed diesel is chemically similar to regular diesel but is colored red to identify it as fuel sold for qualifying off-road purposes. Since road taxes aren’t normally collected on it, filling an ordinary highway vehicle with tax-exempt dyed diesel can result in penalties.

Abbott’s proclamation suspends Texas restrictions that prevent eligible operators from using the fuel on public roads. The governor said the measure is intended to reduce pressure on the state’s agriculture and freight industries.

The change doesn’t transform dyed diesel into discounted fuel for the general public. Ordinary motorists still face the applicable taxes when purchasing fuel for highway use.

Heavier Loads Are Also Getting A Break

Diesel isn’t the only regulation being temporarily relaxed. Texas is also suspending certain oversize and overweight permitting requirements for vehicles hauling fuel, agricultural products, and timber.

Those vehicles can operate at gross weights of up to 95,000 pounds under the proclamation. The goal is to allow more product to be transported per trip while fuel costs are elevated.

Abbott has also asked EPA Administrator Lee Zeldin for a temporary waiver covering federal ultra-low-sulfur diesel requirements and Texas Low Emission Diesel rules affecting 110 counties. According to the governor’s office, relaxing those requirements could increase the amount of fuel available in the state.

For the average diesel-pickup owner, however, there’s no sudden tax-free fill-up waiting at the local farm pump. Texas has opened the door for dyed diesel to travel on public roads, but it hasn’t opened that door to everyone.

Author: Andre Nalin

Title: Writer

Andre has worked as a writer and editor for multiple car and motorcycle publications over the last decade, but he has reverted to freelancing these days. He has accumulated a ton of seat time during his ridiculous road trips in highly unsuitable vehicles, and he’s built magazine-featured cars. He prefers it when his bikes and cars are fast and loud, but if he had to pick one, he’d go with loud.

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