Diesel Costs Rose As States Eased Fuel Rules

Governments have relaxed dyed diesel restrictions to combat high prices affecting the U.S. freight industry.

Updated on Sept. 30, 2026 in Trucks

Diesel Costs Rose As States Eased Fuel Rules

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Do you expect the cost of everyday goods to rise due to higher shipping and fuel prices?

U.S. on-highway diesel prices hit $6.38 per gallon as states like North Dakota and Texas moved to ease restrictions on dyed fuel usage. These regulatory changes aim to support agricultural operations amid elevated energy costs.

Why it matters

Rising diesel prices have tightened motor carrier margins while refining capacity issues and shipping uncertainty through the Strait of Hormuz keep fuel costs high. The potential for a U.S. export ban and low distillate inventories further complicate the outlook for the shipping and heating sectors.

On-highway diesel averaged $6.38 per gallon, while dry van spot rates declined to $2.17 per mile for the week of Sept. 13. Meanwhile, DAT One load postings increased by 16%, reaching 2.9 million for the same week.

The players

Kelly Armstrong

He is the Governor of North Dakota who declared an emergency to address rising fuel costs.

Greg Abbott

He is the Governor of Texas who authorized the easing of restrictions on red-dyed diesel fuel.

The details

States are permitting agricultural vehicles to utilize red-dyed diesel on public roads to mitigate the financial burden of high fuel surcharges. North Dakota has additionally enabled potential state tax savings of 19 cents per gallon to support operations through the end of November.

August 2026: Trailer orders reached 24,144 units.
Sept. 13, 2026: National spot freight rates exceeded nine-year averages.
Sept. 28, 2026: Average U.S. on-highway diesel reached $6.38 per gallon.
Sept. 29, 2026: North Dakota Gov. Kelly Armstrong declared an emergency.
Nov. 30, 2026: The North Dakota state tax savings window concludes.

Roadmap

The freight industry continues to navigate a volatile landscape defined by fuel price spikes and fluctuating shipping predictability. This reliance on global energy channels mirrors broader challenges in the supply chain that force states to intervene in fuel regulation to maintain local operations.

Higher diesel costs continue to pressure motor carrier budgets, potentially leading to increased freight surcharges for goods. Drivers and businesses in states with relaxed dyed-diesel rules may see temporary relief on operational fuel expenditures.

The takeaway

Energy price volatility remains a significant factor for the long-term planning of the freight and logistics industry. Operators should monitor potential shifts in federal export policies and inventory levels to prepare for upcoming heating and shipping demands.