Energy

West Virginia Rolls Out Its Own Red Diesel Emergency Order As Skyrocketing Prices Crush Americans

Unsplash/Dawn McDonald

President Donald Trump’s push to slash soaring diesel costs gained ground Tuesday after West Virginia declared a statewide emergency, allowing truckers to use fuel normally reserved for farmers and heavy machinery.

Republican Gov. Patrick Morrisey declared a 60-day state of emergency across all 55 counties, temporarily suspending penalties for using red-dyed diesel on public highways. The move builds on Trump’s Oct. 5 executive order allowing temporary federal relief for highway use of the fuel, though questions remain over whether businesses will eventually be forced to pay deferred federal taxes.

“Transportation costs affect the prices we pay at the grocery store and throughout our economy,” Morrisey said in the announcement. “Today, we’re giving businesses and citizens an opportunity to lower those costs, so that savings will benefit West Virginia families.”

Red-dyed diesel, typically reserved for tractors, construction equipment and other off-road machinery, is generally cheaper than regular highway diesel because of its tax treatment. Morrisey’s administration estimates the latest action could save drivers 20.5 cents per gallon, or approximately $41 on a 200-gallon fill-up.

Morrisey did not immediately respond to the Daily Caller News Foundation’s request for comment.

Fuel distributors and truck stops have hesitated to sell red-dyed diesel despite Trump’s executive order, fearing they could be left responsible for deferred federal fuel taxes.

Diesel prices in West Virginia reached $6.34 per gallon Tuesday, compared with $3.57 a year earlier, according to AAA data cited by the governor’s office. The state warned that elevated fuel costs threaten essential deliveries, agriculture and emergency services, with coal, natural gas and forestry operations particularly vulnerable.

Trump signed his red-dyed diesel executive order Oct. 5, directing the Treasury Department to examine deferring the federal 24.4-cent-per-gallon excise tax through Dec. 31 while exploring whether the obligation could be eliminated altogether. However, fuel companies have been reluctant to participate without assurances they will not be left footing the bill, the Daily Caller News Foundation previously reported.

“President Trump’s executive action will quickly cut diesel costs by authorizing highway use of tax-free dyed diesel and deferring the federal diesel excise tax through the end of the year,” White House spokeswoman Taylor Rogers previously told the DCNF.

The Internal Revenue Service announced Oct. 14 that it would suspend federal penalties and inspections targeting highway use of dyed diesel through Dec. 31, while additional guidance on postponing tax payments remains forthcoming. The agency also said it would explore avenues to eliminate deferred tax obligations.

Kevin Book, managing director at ClearView Energy Partners, previously told the DCNF that expanding highway access to red-dyed diesel could reduce prices, but permanently eliminating the federal tax obligation would likely require congressional action.

The American Trucking Associations similarly warned that opening highway access to dyed diesel does not create additional fuel supplies or resolve the shortages driving prices higher.

West Virginia’s coal industry welcomed Morrisey’s decision, arguing that rising fuel costs have placed additional pressure on an industry already struggling to compete.

“The unprecedented rise in fuel costs for surface mining and coal haulage have added to the challenges facing West Virginia coal,” Chris Hamilton, president and CEO of the West Virginia Coal Association, said. “The suspension will reduce cost pressure and help us compete in a very difficult market.”

James Smith, executive director of the West Virginia Forestry Association, warned that unprecedented operating costs are threatening loggers’ ability to remain in business.

Rebecca McPhail, president of the Gas and Oil Association of West Virginia, also praised the temporary flexibility, arguing that rising fuel costs are putting pressure on producers, contractors and service companies.

West Virginia’s motor fuel excise tax and commercial vehicle safety inspections will remain in effect, according to the governor’s office.

The emergency declaration takes effect immediately and will last 60 days unless ended earlier, while the federal red-dyed diesel relief is scheduled to expire Dec. 31.