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Beshear relaxes rules on red-dyed diesel to help farmers

Gas prices have risen during the U.S. war with Iran and are averaging around $4.06 per gallon across Kentucky, up from $2.9 a year ago. In October, diesel prices are closer to 6.19.
Sarah Ladd
/
Kentucky Lantern
Gas prices have risen during the U.S. war with Iran and are averaging around $4.06 per gallon across Kentucky, up from $2.9 a year ago. In October, diesel prices are closer to 6.19.

Move follows Trump order to defer federal taxes on the fuel

Gov. Andy Beshear has declared a state of emergency for Thursday, Oct. 8, that will allow Kentucky farmers and truckers to use untaxed or red-dyed diesel fuel on public roadways to help with high prices during the fall harvest.

The move follows a request to Beshear by Agriculture Commissioner Jonathan Shell, asking for that action after President Trump issued an executive order to defer federal taxes on the fuel and allowed the fuel to be used on public roadways.

“The President’s war of choice and unlawful tariffs have caused prices to skyrocket for hardworking Americans – including here in Kentucky – and I have taken urgent action to help families across the commonwealth, including farmers, by lowering gas and diesel prices, suspending the gas tax increase and more,” Beshear said in a statement. “This has been a priority for me, and I am glad to see other leaders recognize that steps need to be taken to help hardworking families across our commonwealth and country.”

The price of diesel and gas have gone up in recent months because of global political conflicts, like Trump’s war in Iran over the Strait of Hormuz, where oil supplies are transported.

On Tuesday, Shell told the Kentucky Lantern that a lot of Kentucky farmers already have tanks on their farm for red-dyed diesel, so Shell expects many of them to go into “immediate use.” He added that some issues after the executive order expires, like some of the dye still being in tanks once the prohibition goes back into effect, still needs to be worked out.

After the governor’s declaration, Shell said: “This is welcome news for Kentucky farmers. Thank you to President Trump, Attorney General Coleman, and the Governor for moving this forward.” Shell’s initial letter had asked Beshear to take action with Republican Attorney General Russell Coleman’s permission.

Beshear’s order will continue until the end of the war in Iran or the expiration of the President’s executive order on Dec. 31, 2026, whichever is earliest, his office said.

This story has been updated with additional comments. 

This story was originally published by the Kentucky Lantern.

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