BATON ROUGE, La. — Louisiana Gov. Jeff Landry has declared a statewide emergency in response to a diesel fuel shortage and record prices, temporarily easing fuel restrictions for farmers and timber operators during a critical harvest period.
The executive order, signed Sept. 22 and effective Sept. 23, allows qualifying agricultural and forestry vehicles to use dyed diesel fuel without facing certain state penalties. The emergency measure is scheduled to remain in effect through Oct. 22 unless it is extended, amended or ended earlier.
Emergency Order Provides Diesel Relief for Agriculture and Forestry
Dyed diesel is an untaxed fuel generally intended for off-road equipment such as tractors, irrigation pumps and forestry machinery. Because the fuel is exempt from highway taxes, its use in vehicles registered for public roads is normally restricted.
Landry’s order temporarily suspends state penalties for using dyed diesel in vehicles registered as Class 2 for forest products or Class 5 for farm use.
“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 in a statement.
Under Louisiana law, unauthorized use of dyed diesel in a highway-registered vehicle can result in a penalty of $10 per gallon or $1,000, whichever amount is greater.
The emergency order prevents state agencies from enforcing that penalty against qualifying farm and forestry vehicles during the temporary relief period.
Louisiana Diesel Prices Reach $6.03 Per Gallon
The action comes as diesel prices in Louisiana have climbed to an all-time high of $6.03 per gallon, creating additional costs for agricultural producers and forestry businesses that depend heavily on fuel.
According to the executive order, the current price is more than double the $2.85-per-gallon figure used by the LSU AgCenter when preparing its 2026 crop budgets. Diesel prices are also more than 80% higher than they were a year earlier.
Fuel expenses can represent a significant operating cost for farms and timber operations, particularly during harvest periods when tractors, trucks and other heavy equipment are running for extended periods.
By temporarily permitting qualifying operators to use dyed diesel they already have available, state officials are seeking to provide immediate flexibility while diesel supplies remain constrained.
Louisiana Seeks Federal Relief From Dyed Diesel Penalties
The state action does not automatically eliminate federal restrictions on dyed diesel.
Landry’s executive order directs the Louisiana Department of Revenue to formally request similar penalty relief from the Internal Revenue Service, which oversees federal rules governing the use and taxation of dyed diesel. The state expects the request to be submitted by the end of the week.
State officials attributed the price surge in part to a broader national diesel shortage.
Federal energy data cited in the executive order shows U.S. diesel inventories running substantially below the five-year average while fuel exports remain near record levels. Louisiana officials said those conditions have contributed to higher domestic diesel prices.
Emergency Declaration Activates Price-Gouging Protections
Because the declaration applies statewide, it also activates Louisiana’s price-gouging protections.
The law generally prohibits sellers from sharply increasing prices for goods and services during a declared emergency unless higher prices can be justified by legitimate market conditions or increased business costs.
The provision is intended to protect consumers and businesses from unjustified price increases while allowing companies to account for genuine changes in wholesale prices, transportation expenses and other market factors.
Relief Scheduled to Continue Through October 22
The temporary diesel exemption is set to expire Oct. 22. Landry can extend, amend or terminate the emergency order before that date depending on fuel supplies, prices and broader market conditions.
For Louisiana’s agriculture and forestry sectors, the measure provides short-term flexibility at a time when unusually high diesel costs are adding pressure to harvesting and transportation expenses. The state is now seeking corresponding federal relief so qualifying operators can receive similar protection from federal penalties during the emergency period.
William Faulkner writes for Social Post News, covering news, politics, business, technology, sport, entertainment, and lifestyle. He focuses on clear, reliable reporting and useful information, helping readers stay informed about current events, emerging trends, and stories that matter.
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