Louisiana Governor Signed Diesel Emergency Order
Governor Jeff Landry issued an order allowing farmers to use tax-exempt dyed diesel amid rising fuel costs.
Updated on Sept. 23, 2026 in Agriculture
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Governor Jeff Landry signed executive order JML 26-090 to address high fuel prices currently straining agricultural operations in Louisiana. The mandate suspends penalties for using off-road dyed diesel in highway-registered vehicles through October 22.
Why it matters
Farmers are facing operational costs more than double original budget projections, threatening the viability of active sugarcane, rice, and soybean harvests. High diesel prices and low fuel inventories have created an emergency, forcing state officials to intervene to support the agricultural sector.
Louisiana's average retail diesel price is $6.03 per gallon, a significant jump from the $2.85 assumed in 2026 crop budgets. The executive order temporarily suspends state penalties under R.S. 47:818.52 to provide relief to farmers and timber haulers.
The players
Jeff Landry
Jeff Landry is the Governor of Louisiana who serves as the state's chief executive.
Louisiana Department of Revenue
The Louisiana Department of Revenue is the state agency responsible for administering tax laws and penalty relief programs.
LSU AgCenter
LSU AgCenter is an institution that provides research and agricultural guidance to farmers across the state.
The details
The executive order applies to Class 2 and Class 5 vehicles, allowing the use of tax-exempt dyed diesel to lower production expenses during peak harvest. Furthermore, the governor directed the Louisiana Department of Revenue to seek federal relief from IRS penalties associated with the practice.
Timeline
September 16, 2026: A federal Hours of Service waiver was issued for fuel haulers.
October 22, 2026: The state emergency order is scheduled to expire.
Market Landscape
This emergency order aligns with the R.S. 29:732 statewide price-gouging protection, illustrating how state governments are intervening to stabilize essential supply chains during fuel shortages. It highlights a broader trend where regional agricultural producers are forced to adapt to volatile commodity markets that diverge significantly from annual budget forecasts.
Farmers and timber haulers can expect a reduction in immediate operational costs by utilizing tax-exempt diesel for road-registered vehicles. While this provides temporary relief, consumers should monitor whether these savings manage to stabilize commodity prices at the grocery store.
The takeaway
The sudden spike in fuel prices demonstrates the necessity for producers to maintain flexible operational plans amidst volatile global energy markets. Producers should leverage these temporary regulatory relief measures to ensure the completion of critical seasonal harvests.
What happens next
The current executive order regarding dyed diesel use is set to expire on October 22, 2026.
Further reading
For more on local farming initiatives, visit the Agriculture section.
Live Poll
Do you believe state emergency orders effectively manage high fuel costs for local businesses?
