Texas Governor Greg Abbott declared a statewide disaster on Monday, September 28, 2026, in response to record-high diesel prices and fuel shortages. The declaration aims to provide relief for the state's agricultural, ranching, and freight industries which rely heavily on diesel. Retail diesel prices in Texas hit a record average of $5.97 per gallon in September, a significant increase from $3.30 per gallon in early February, largely due to ongoing global conflicts affecting oil and gas exports from the Middle East, particularly the U.S.-Iran war that began seven months prior.
The disaster proclamation temporarily waives state restrictions on the use of dyed diesel, which is typically untaxed and reserved for off-road agricultural and construction equipment. This allows farmers and truckers to use this cheaper fuel on public roads without penalty, although the underlying fuel tax of $0.20 per gallon remains in effect. Additionally, the order suspends state oversize and overweight permitting requirements for vehicles transporting fuel, agricultural, or timber products, permitting them to carry gross weights of up to 95,000 pounds, subject to bridge weight limits.
Governor Abbott also requested the U.S. Environmental Protection Agency (EPA) to grant a temporary Clean Air Act waiver for federal ultra-low sulfur diesel (ULSD) requirements and Texas Low Emission Diesel (TxLED) rules in 110 Texas counties. This waiver, if approved, would allow a broader range of diesel fuels to be sold in the state, further increasing supply and potentially lowering costs. The 30-day disaster declaration can be extended indefinitely, providing ongoing flexibility to address the fuel crisis.
The measure has been welcomed by industry groups like the Texas Farm Bureau, with President Russell Boening stating that farmers and ranchers appreciate efforts to alleviate high production costs. The governor's office highlighted that these steps are intended to cut costs for agriculture, freight, and ultimately for Texas families through reduced prices at the store. This move comes as affordability and economic concerns are central to the upcoming November 3 midterm elections in the U.S., with Abbott facing competitive elections.
