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Texas Widens Dyed Diesel Use Amid Fuel Crisis

Bloomberg Markets •
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Texas Governor Greg Abbott issued a disaster proclamation allowing farmers and truckers to use dyed diesel, typically reserved for off-road vehicles, on public roads to combat rising fuel costs. The war in Ukraine and disruptions in the Strait of Hormuz have strained global diesel supplies, pushing US retail prices to a record $6.44 a gallon. President Donald Trump is considering a ban on US diesel exports, which analysts warn could further inflate overseas prices, especially in Europe.

Abbott stated that the measures cut costs for farms, roads, and stores, while suspending Texas Low Emission Diesel rules to align with EPA allowances. The state also permits heavier loads for fuel, crop, and timber transport. This shift reflects broader national pressure as fuel affordability becomes a critical issue for industries and families alike.

The policy change underscores the intersection of energy security, economic strain, and federal-state dynamics during geopolitical instability.