Gov. Greg Abbott declared a statewide disaster Monday as Texas grapples with soaring diesel prices and fuel shortages tied to ongoing conflicts overseas.
The disaster declaration will remain in effect for 30 days, although it can be extended. Abbott’s accompanying order temporarily eases several restrictions on commercial transportation and diesel use in an effort to increase fuel availability and reduce costs for farmers, truckers and consumers.
Diesel plays a major role in both agriculture and freight transportation, meaning higher fuel prices can ripple through the economy. Farmers pay more to operate equipment and move crops, while trucking companies face higher costs to transport everything from food to building materials. Those expenses can eventually show up in prices paid by consumers.
“Texas agriculture and freight run on diesel,” Abbott said in a statement. “Record prices put both industries at risk and raise costs for every Texas family. 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.”
Texas temporarily expands use of dyed diesel
Among the biggest changes is the expanded use of dyed diesel on Texas roads.
Dyed diesel is essentially the same fuel used in diesel-powered vehicles, but it is colored red and typically reserved for off-road equipment used in industries such as farming and construction. Because the fuel is exempt from state and federal road taxes, using it in vehicles traveling on public roads is normally prohibited and can result in penalties.
Temporarily allowing more dyed diesel onto Texas roads could increase the amount of fuel available to farmers and commercial operators at a time when supplies are tight.
Abbott’s action does not eliminate the underlying Texas motor fuel tax, which is 20 cents per gallon on gasoline and undyed diesel.
The order also suspends Texas Low Emission Diesel requirements to the extent allowed by the federal government and increases allowable weights for certain fuel, agricultural and timber loads.
Abbott is also asking the U.S. Environmental Protection Agency to waive federal ultra-low sulfur diesel requirements, another step aimed at expanding available fuel supplies.
Diesel prices have surged in Texas
The emergency action comes after months of sharply rising fuel costs.
AAA reported the average price of diesel in Texas at $5.86 per gallon. That represents a dramatic increase from early February, when diesel was around $3.30 per gallon in the state.
The increase has coincided with months of disruption in global energy markets following coordinated U.S. and Israeli strikes on Iran and the conflict that followed. Monday marks seven months since those strikes began, with disruptions to Middle Eastern oil and gas exports contributing to higher fuel prices around the world.
For Texas, the impact is particularly significant because of the state’s massive agriculture, trucking and logistics industries.
Higher diesel costs can hit farmers several times over. Fuel is needed to operate agricultural machinery, transport crops and livestock and deliver supplies. Trucking companies face similar pressures as fuel becomes more expensive, potentially increasing the cost of moving products across the state and country.
Fuel prices become an election issue
The timing also puts fuel affordability squarely in the middle of the 2026 election campaign.
Voters head to the polls Nov. 3 for the midterm elections, and the cost of living has emerged as a major political issue. Abbott and other statewide Republican officeholders are seeking reelection in Texas, where Democrats are attempting to break a statewide losing streak that dates to 1994.
Abbott’s Democratic opponent, state Rep. Gina Hinojosa, has called on the governor to suspend the state gasoline tax as Texans deal with higher prices.
Abbott’s office has maintained that the governor does not have the authority to unilaterally waive state taxes.
The dispute could keep fuel prices at the center of the governor’s race, particularly if diesel and gasoline costs remain elevated heading into November.
Abbott has previously turned to emergency authority to loosen diesel restrictions during a crisis. In 2024, he waived restrictions involving dyed diesel as the Texas Panhandle battled devastating wildfires.
This time, however, the declaration covers the entire state and is aimed at an economic problem affecting farms, freight companies and household budgets alike.
