Texas Declares Disaster With Diesel Prices Hovering Near $6 Per Gallon
It's no secret that the current economy has most people hurting on the money front, and those with diesel vehicles-- personal or for work use-- are certainly feeling the effects of soaring fuel prices. Texas — a state very reliant on diesel for ranching, farming, and oil production — is taking emergency action to help farmers and freight operators cope with soaring diesel prices, but don't expect the move to make filling up your pickup any cheaper.
Governor Greg Abbott issued a statewide disaster proclamation in late September, temporarily allowing certain commercial operators to use dyed diesel fuel on public roads. The move is intended to ease the financial strain on agricultural businesses and trucking companies that depend on diesel to keep goods moving.
According to AAA data cited in the proclamation's coverage, Texas diesel prices averaged approximately $6.43 per gallon, roughly 75% higher than the $3.68 average recorded a year earlier. That's a substantial jump for an industry where fuel is one of the biggest operating expenses.
Dyed diesel — sometimes called farm diesel, off-road, or red diesel — is typically reserved for agricultural machinery and other qualifying industrial uses. Though effectively identical to on-road diesel, it is generally exempt from fuel taxes (in an effort to help save businesses money), and it costs less than conventional highway diesel. Its distinctive red coloring also helps authorities identify fuel being used illegally on public roads.
Under Texas' emergency order, qualifying operators can temporarily use this fuel on highways without facing the usual state restrictions and penalties should one get caught for doing so. The proclamation also allows certain fuel, crop, and timber haulers to transport heavier loads, potentially reducing the number of trips needed to move goods.
There's an important catch, however: The order doesn't eliminate the diesel tax itself, and it doesn't allow ordinary, non-commercial motorists to purchase tax-exempt fuel. Eligibility requirements remain in place, meaning most diesel pickup owners won't benefit directly.
The measure also does little to address the underlying causes of rising fuel costs. International conflicts and disruptions to global oil supplies have put pressure on prices, while approaching winter typically brings additional demand for heating oil and subsequently higher prices at the pump due to supply constraints.
For Texas' agricultural and freight industries, the new emergency proclamation offers some breathing room. But unless diesel prices start coming down from the astronomical level they are currently at, businesses will likely continue passing at least some of their increased transportation costs along to consumers. Long story short: Don't expect to feel any real benefits from Abbott's disaster proclamation.
