âš¡ Key Takeaways
- Dyed diesel is temporarily permitted on Texas public roads.
- Weight limits raised to 95,000 lbs for fuel, ag and timber loads.
- The 20-cent Texas fuel tax still applies. This is not a tax holiday.
- EPA approved a temporary Texas diesel waiver on October 5, effective through October 24, 2026, for qualifying older vehicles and equipment.
- Proclamation runs in 30-day increments and can expire or be renewed.
- A separate federal order may defer the 24.4-cent federal tax through December 31, 2026.
Live update. Last updated October 13, 2026. EPA waiver approved; supplier availability still requires confirmation.
On October 5, President Trump signed an executive order on dyed diesel used on the highway. It directs the Treasury to defer the 24.4-cent federal diesel tax on that fuel for October 5 through December 31, 2026, and directs the IRS not to impose the federal dyed-fuel penalty for the same period. Treasury and IRS guidance is still pending.
The federal order does not change Texas tax. Dyed diesel used on Texas roads still owes the state’s 20-cent-per-gallon tax. Read our breakdown of the federal dyed diesel executive order.
This situation is still developing. We’ll update this page as EPA monitors or revises the temporary Texas waiver, as the Comptroller publishes more tax guidance, and as the proclamation itself changes or expires.
Update October 1, 2026: Texas Comptroller clarifies the road-use tax
The Texas Comptroller confirms that the September 28 disaster declaration does not waive the Texas diesel fuel tax. Dyed diesel used in a taxable on-highway manner remains subject to the state’s 20-cent-per-gallon tax under Texas Tax Code Section 162.203. Permission to use the fuel on highways is not permission to use it tax-free.
In an advisory response provided to Fuel Logic, the Comptroller also stated that applicable purchasing requirements, including permitting and documentation, remain unchanged. The agency says it is still exploring options for how taxpayers can remit the tax due. Check the Comptroller’s diesel fuel page for updates, and confirm the reporting and payment requirements that apply to you with the Comptroller or your tax adviser before changing your fuel program.
This isn’t the first time Texas has used this tool. Abbott issued a temporary dyed-diesel waiver during the 2024 Panhandle wildfires. One key difference: in 2024 the state’s 20-cent tax was also waived. This time it is not. It’s an established emergency mechanism, not a new or unusual maneuver.
Governor Abbott’s Texas disaster proclamation suspends dyed diesel road use restrictions for all 254 Texas counties, effective September 28, 2026, in response to high diesel prices. If you run trucks, generators, or farm equipment in Texas, here’s what actually changed and, just as important, what didn’t.
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The short version: road-use restriction relief is not a tax holiday, and EPA’s approved waiver applies only to qualifying engines and equipment. Everything below explains what that actually means for your operation.
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What Happened
Governor Abbott’s proclamation does three specific things, read directly from the Governor’s office announcement and the disaster proclamation itself:
- It suspends state restrictions and penalties on using dyed diesel on public roads in Texas, to the extent the proclamation’s suspension covers and subject to any other restrictions and current agency guidance, not a blanket “use it however you want” pass. Dyed diesel is off-road fuel, marked red, normally sold without the motor-fuels tax and restricted to off-road equipment. The proclamation lets operators use it on Texas roads for the duration of the disaster declaration, within those bounds.
- It raises the weight limit for fuel, agricultural, and timber loads. Vehicles carrying these loads can operate up to 95,000 pounds gross weight under a state oversize/overweight permitting suspension, up from the standard limit, to the extent that specific suspension applies. Other requirements, including bridge weight limits, still apply on top of it.
- It conditionally suspends Texas Low Emission Diesel (TxLED) rules, the state’s cleaner-diesel requirement that applies in 110 Texas counties, but only to the extent the EPA authorizes. EPA issued a temporary Texas diesel waiver on October 5, 2026, effective through October 24, 2026. It relaxes TxLED and ultra-low sulfur diesel requirements for certain older diesel vehicles and nonroad equipment originally designed and certified for higher-sulfur fuel.
Separately, Abbott sent a letter to EPA Administrator Lee Zeldin requesting a temporary federal Clean Air Act waiver of ultra-low sulfur diesel requirements and the TxLED rules, citing tight supply and high prices. That’s a request Texas made of the federal government, not something Texas itself has the power to grant. EPA issued a temporary Texas diesel waiver on October 5, 2026, effective through October 24, 2026. As described on EPA’s Fuel Waivers page, it relaxes TxLED and ultra-low sulfur diesel requirements for certain older diesel vehicles and nonroad equipment originally designed and certified for higher-sulfur fuel.
What This Means for Your Business
Supplier availability update: Regulatory relief does not guarantee that suppliers can provide dyed diesel for on-road use. Confirm fuel availability, applicable tax requirements, distribution logistics, interstate compliance, and equipment compatibility before changing purchasing or routing plans. Fuel Logic is still evaluating how to navigate the applicable tax requirements and cannot guarantee dyed diesel delivery for use in on-road fleet vehicles. Call Fuel Logic so we can assess your unique situation.
If you operate in Texas, this is genuinely useful relief in a couple of specific ways. Farm and freight operations hauling fuel, agricultural products, or timber can move heavier loads without needing a separate overweight permit, which can mean fewer trips for the same volume. And where dyed diesel is available and it makes sense operationally, road use is no longer automatically a violation under state law for the life of this proclamation.
That’s real, but it’s narrower than the headline suggests. Nothing here changes what diesel costs at the pump today, this addresses a regulatory restriction, not the underlying price of fuel. It also isn’t free: dyed diesel used on the road still owes Texas’s 20-cent-per-gallon diesel fuel tax. EPA approved temporary TxLED and ultra-low sulfur diesel relief on October 5, effective through October 24, 2026, for qualifying older vehicles and equipment. This is not blanket permission to use higher-sulfur fuel in every diesel engine; confirm fuel specifications and equipment eligibility before changing your fuel program.
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What This Doesn’t Mean
It doesn’t mean dyed diesel is now tax-free for road use. The proclamation suspends the state’s road-use restriction and related penalties. According to the Texas Comptroller, it does not waive the Texas diesel fuel tax. Dyed diesel is generally bought tax-free for off-highway use, but it becomes subject to the state’s 20-cent-per-gallon tax when it’s used in a taxable on-highway manner. The proclamation permits that use. It doesn’t cancel the tax owed, and purchasing requirements, including permitting and documentation, haven’t changed. The Comptroller is still working out how taxpayers remit the tax due. That pending guidance is not permission to defer payment.
It doesn’t mean every diesel engine can use higher-sulfur fuel. EPA approved a temporary Texas waiver on October 5, 2026, effective through October 24, 2026. The TxLED and ultra-low sulfur diesel relief applies to certain older diesel vehicles and nonroad equipment originally designed and certified for higher-sulfur fuel. It does not remove fuel requirements for newer engines that need ultra-low sulfur diesel. Confirm eligibility and fuel specifications before changing fuel.
It doesn’t mean this is permanent. Texas disaster proclamations typically run in 30-day increments by default, renewable at the Governor’s discretion, according to reporting on this proclamation. The proclamation itself doesn’t print a fixed expiration date in what we’ve reviewed. Either way, confirm its current status before relying on it for anything beyond the immediate term, it could be renewed, amended, or allowed to lapse.
It doesn’t mean this applies outside Texas. This is a Texas state action. If you operate fleets across multiple states, this proclamation has no effect on your operations outside Texas. The October 5 federal order does apply nationwide, but only to federal tax and federal penalties. Each state’s own rules and taxes still apply.
Before You Change a Fuel Order or Route
Work through this before you change anything operationally:
- Verify the proclamation’s current status directly with the Governor’s office or your counsel, don’t assume it’s still active by the time you’re reading this.
- Confirm tax handling and purchasing requirements before you buy, use, invoice, or transport dyed diesel differently. The Comptroller says taxable on-highway use of dyed diesel still owes Texas’s 20-cent-per-gallon diesel fuel tax, and that permitting and documentation requirements for purchasing dyed diesel haven’t changed. Confirm how to report and pay with the Comptroller or your tax adviser. Federal fuel tax is now covered by the October 5 executive order, which defers it and does not cancel it. Wait for IRS guidance before you budget around it.
- Confirm fuel specifications and equipment suitability for whatever product you’re actually planning to use, don’t assume broader access to dyed diesel means every engine or application is a fit.
- Confirm the specific load qualifies for the permitting relief, stays at or below 95,000 pounds gross weight, and still respects bridge limits and any other applicable restrictions.
- Check interstate routes separately. This proclamation is a Texas state action; a route that crosses state lines may not carry the same relief the whole way.
If your operation depends on off-road diesel for equipment that genuinely doesn’t run on public roads, day to day nothing about your fuel program needs to change. That’s still standard off-road diesel delivery, the same product, the same use case, regardless of what happens in Austin or at EPA this month.
Not Sure How This Affects Your Fuel Program?
Talk to the Fuel Logic team.
We deliver off-road and on-road diesel across Texas and can walk you through what’s changed for your operation.
We’ll Keep This Updated
This page will get updated as the situation moves: if EPA extends or revises the temporary waiver, if the proclamation is renewed, amended, or expires, if the Comptroller publishes guidance on how to remit the tax due, or if Treasury and the IRS issue guidance on the federal order.
Check back here for the current status rather than relying on the date you first read this.
Fuel Logic Delivers Off-Road Diesel, Wherever Your Equipment Actually Runs
Whatever happens with this proclamation, the fuel needs of equipment that runs off public roads don’t change. Fuel Logic delivers off-road diesel directly to farm equipment, generators, and job sites across Texas and the rest of the lower 48, on your schedule, with clear invoicing you can hand straight to your accountant. Request a delivery online to talk through what your operation needs right now.
Frequently Asked Questions
These are the most relevant FAQs updated regularly to reflect the story.
What did Governor Abbott’s proclamation actually change?
It suspended Texas’s state restrictions and penalties on using dyed diesel on public roads, raised the weight limit for fuel, agricultural, and timber loads to up to 95,000 pounds gross weight under a permitting suspension, and conditionally suspended Texas Low Emission Diesel (TxLED) rules to the extent the EPA authorizes. It covers all 254 Texas counties.
Is dyed diesel now tax-free for road use in Texas?
No. According to the Texas Comptroller, dyed diesel used in a taxable on-highway manner remains subject to the Texas diesel fuel tax of 20 cents per gallon. The proclamation suspends the road-use restriction, not the tax, and applicable purchasing permits and documentation requirements remain in place. The Comptroller is still exploring how taxpayers will remit the tax due. Don’t treat that as permission to defer payment.
Has the EPA approved Texas’s waiver request?
Yes. EPA issued a temporary Texas diesel waiver on October 5, 2026, effective through October 24, 2026. It relaxes TxLED and ultra-low sulfur diesel requirements for certain older diesel vehicles and nonroad equipment originally designed and certified for higher-sulfur fuel. It is not blanket approval for every vehicle or engine. Confirm equipment eligibility, fuel specifications, and applicable tax requirements before changing your fuel program.
How long does this proclamation last?
Texas disaster proclamations typically run in 30-day increments by default and can be extended at the Governor’s discretion, according to reporting on this proclamation. It doesn’t print a fixed expiration date in what we’ve reviewed. Confirm current status before relying on it long-term, it could be renewed, amended, or allowed to lapse.
Can I run overweight loads without a permit now?
Only to the extent this specific suspension covers: vehicles carrying fuel, agricultural, or timber products, up to 95,000 pounds gross weight. Other requirements, including bridge weight limits, still apply on top of it. It’s not a blanket overweight pass for every load.
Does this proclamation apply outside Texas?
No. This is a Texas state action. If you operate fleets across multiple states, it has no effect on operations outside Texas, and a route that crosses state lines may not carry the same relief the whole way. The October 5 federal order does apply nationwide, but only to federal tax and federal penalties. Each state’s own rules and taxes still apply.
Should I change how I buy or use fuel because of this?
Talk to your tax and compliance counsel first. The road-use restriction and the tax are two separate questions. Using dyed diesel on the road is now permitted under the proclamation, but the 20-cent-per-gallon Texas diesel tax still applies, and purchasing permit and documentation requirements haven’t changed. If your equipment already runs entirely off public roads, nothing about your fuel program needs to change.
Has Texas done something like this before?
Yes. Abbott issued a temporary dyed-diesel waiver during the 2024 Panhandle wildfires. One key difference: in 2024 the state’s 20-cent tax was also waived. This time it is not. This is an established emergency mechanism, not a new or unusual maneuver.
How do I pay the tax on dyed diesel I use on the road?
The Comptroller hasn’t published a method yet. The agency says it is still exploring options for how taxpayers can remit the tax due and asks people to check its diesel fuel page for updates. Until it does, confirm your reporting and payment steps directly with the Comptroller or your tax adviser.
Does the federal executive order change anything in Texas?
It may defer the 24.4-cent federal tax and pause federal penalties through December 31, 2026, once Treasury and the IRS publish guidance. The Texas 20-cent tax and purchasing requirements are unchanged.
This article is for general information only and is not tax, legal, or regulatory advice. Confirm current requirements with your own counsel before changing how you buy, use, or report fuel.
