Full Breakdown
Louisiana Governor Declares Emergency to Allow Dyed Diesel Use Amid Record Prices
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Emergency Order Expands Dyed Diesel Use for Harvest Operations
Governor Jeff Landry signed an executive order that temporarily suspends the state penalty for using dyed (off-road) diesel in highway-registered vehicles classified for “Farm Use” (Class 5) or “Forest Products” (Class 2). The suspension runs through October 22, 2026. The order permits tractors, skidders, irrigation pumps and other harvest equipment to draw from on-farm dyed-diesel stores without facing the usual $10-per-gallon or $1,000 fine.
Background & Context: National Shortage and Statewide Price Surge
U.S. distillate inventories are 12.5 % below the five-year average, and net exports of diesel remain near five-year highs. In Louisiana, the average retail diesel price has climbed to an all-time high of $6.03 per gallon, more than double the price used by the LSU AgCenter in its 2026 crop-budget models. The surge coincides with peak harvest activity for sugarcane, rice and soybeans across Acadiana.
Data & Statistics
- Diesel price: $6.03 / gal (state average).
- Price increase: 112 % above the LSU AgCenter’s budget assumption.
- National inventories: 107.9 million barrels for the week ending September 11, with days-of-supply at 29.9—the lowest recorded.
- Export levels: 1.935 million barrels per day for the week ending August 7, the highest weekly figure since tracking began in 2010.
- Potential farmer savings: The American Sugar Cane League estimates over $8 million in savings for sugarcane growers during the 2026 harvest.
Official Statements & Responses
The order directs Louisiana Department of Revenue secretary Jarrod J. Coniglio to request federal penalty relief from the IRS within three business days. The governor has also urged the Trump administration and Congress to consider a 90-day suspension of U.S. penalties.
Timeline
- Late September: Executive order takes effect, authorizing dyed-diesel use for the harvest season.
- September 11: National distillate inventories reported at 107.9 million barrels (lowest supply metric).
- September 16: Federal Hours-of-Service waiver issued to aid diesel and gasoline transport into Louisiana.
- August 7: Diesel exports peak at 1.935 million barrels per day.
- October 22, 2026: Scheduled expiration of the emergency suspension.
Verbatim Quotes
- “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.” — Governor Landry
- “We are grateful to Gov. Landry for recognizing the tremendous pressure these fuel prices are putting on Louisiana’s farmers and taking action to provide relief during harvest,” — American Sugar Cane League
- “It’s the diesel prices that have kept me up at night, to be honest with you,” — Patrick Frischhertz
- “An export ban would increase our domestic supply of diesel and temporarily lower prices,” — Governor Landry
- “This is a misguided proposal that would cause more harm and increase, not decrease, costs for American families and businesses,” — LMOGA President Tommy Faucheux