Gov. Greg Abbott (R-TX) put Texas under a statewide disaster declaration Monday as diesel costs battered farmers and truckers and handed Democrats a campaign-trail attack weeks before the November midterms.
The 30-day move gives agriculture and freight operators temporary relief from state rules that can make hauling fuel, crops and timber more expensive when prices spike.
Under the order, farmers and truckers can take dyed diesel onto Texas roads, and some fuel, crop and timber haulers can carry heavier loads without going through the normal permitting process.
Abbott also loosened Texas Low Emission Diesel rules where Washington permits it and asked the Environmental Protection Agency to pause federal ultra-low sulfur diesel standards so more fuel can move into the state.
“Texas agriculture and freight run on diesel,” Abbott stated. “Record prices put both industries at risk and raise costs for every Texas family.”
🚨Alert: Texas Governor declares emergency to bring down fuel prices! Gov. Greg Abbott, in a tight reelection race, allows for commercial use of diesel normally reserved for agriculture! pic.twitter.com/xnMuOtBS3L
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The governor argued that the emergency action would help limit price pain from farms to store shelves.
“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,” Abbott said.
AAA listed Texas diesel at $5.84 per gallon Tuesday, up from $3.16 at the same point last year.
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The state’s 20-cent-per-gallon motor fuel tax remains in place, the Washington Post reported. Democrats have pushed Abbott to pause it, but his office has maintained that the governor cannot do that alone.
Red-marked diesel is usually reserved for off-road work in farming, construction and similar industries because it is generally not subject to motor-fuel taxes.
Abbott’s proclamation temporarily lets that fuel onto public roads and allows certain fuel, agricultural and timber loads to reach gross weights of up to 95,000 pounds.
The fight over fuel prices is now wrapped into Abbott’s reelection race against Democratic state Rep. Gina Hinojosa (D-TX), who has urged a state gas-tax suspension.
The Texas Democratic Party also went after Abbott on Monday, saying he should pause the fuel tax and pointing to President Donald Trump’s foreign policy as a cause of higher costs.
Diesel in Texas was selling for about $3.30 per gallon in early February before the current surge, according to the Texas Tribune.
Governors in other states are also reaching for emergency tools as global energy disruptions hit drivers, farmers and businesses.
Gov. Brian Kemp (R-GA) declared an emergency Monday and paused Georgia’s fuel excise tax for 30 days, lifting a 33.3-cent-per-gallon gasoline tax and a 37.3-cent-per-gallon diesel tax.
Kemp said Georgia had already given “billions of dollars in relief to hardworking Georgians” and presented the latest step as aid for families and small businesses.
“We’ve remained committed to helping them and our small businesses fight through the tough times, and that’s why I’m taking this action today to give further relief,” Kemp said.
Georgia could lose about $200 million a month from the suspension, though the state surplus could offset that cost, the Atlanta Journal-Constitution reported.
Gov. Jeff Landry (R-LA) took a narrower step last week, allowing certain Louisiana agricultural and timber operators to use dyed diesel.
“We’re not going to sit on the sidelines while Louisiana farmers are paying record prices to harvest the crops that feed our families and support our economy. We have an opportunity to provide immediate relief, and that’s exactly what we’re doing,” Landry said.
The scramble has also reached the White House, where officials are considering ways to expand diesel supply, including wider use of red-dyed diesel, Reuters reported.
Trump told a reporter at the Presidents Cup golf tournament in Illinois on Sunday that a diesel export ban was under serious review.
“That can oftentimes lead to a little bit of an increase in gasoline for cars, so we’re looking at it very seriously. We may do it,” Trump said.
Trump has supported the idea, though the oil industry and other business groups have strongly resisted it.
Reuters reported that the administration has also asked major refiners about voluntary limits on diesel exports, a possible alternative to a federal ban.
Energy Secretary Chris Wright has sounded out executives at several major refiners about whether they would take part while also warning that blocking exports could make prices worse.
The diesel crunch has deepened across the seven months since the U.S.-Israeli conflict with Iran began.
Iran shut down the Strait of Hormuz, where about 20 percent of the world’s oil is exported, driving prices higher.
Trump released 172 million barrels of oil from the Strategic Petroleum Reserve in March, and the stockpile later fell below 300 million barrels for the first time since 1982.
The White House has also discussed asking European governments to draw down diesel from their own strategic reserves, Politico reported.
Europe has more than 350 million barrels of diesel in combined commercial and government reserves across multiple countries, according to the report.
The Energy Department said Tuesday it was seeking proposals for the rest of the planned 172-million-barrel release.
Wright described the Strategic Petroleum Reserve action as proof that the U.S. “continues to lead the coordinated efforts to stabilize oil markets for the benefit of Americans and people around the world.”
He also pressed European countries that have released less than they previously pledged.
“While the United States and Japan are delivering on their commitments, several European member countries have released only a fraction of the crude oil and petroleum products they pledged,” Wright said. “We urge every member country to fulfill its commitments.”
AAA put the national diesel average at $6.44 on Tuesday, $2.75 above the year-earlier price.
