Texas Governor Declares State Of Emergency As Diesel Price Hits Record $5.86 A Gallon, Up From $3.30 In February. The Declaration Suspends Emissions Rules, Raises Truck Weight Limits, And Expands Use Of Tax-Exempt Dyed Diesel On Texas Roads
Texas diesel prices have nearly doubled since February, and Governor Abbott just rewrote the rules on which fuel trucks can legally burn and how much weight they can haul. Whether that moves the needle on costs depends on a supply…
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Texas Governor Greg Abbott declared a 30-day statewide disaster on September 28, 2026, citing record diesel costs and tight fuel supplies. The order waives restrictions on commercial shipping and lifts dyed diesel restrictions on Texas roads.
Four Rule Changes Truckers and Farmers Can Use Right Now
The declaration lifts dyed-diesel restrictions and increases truck weight limits, effective September 29, 2026:
- Expands use of dyed, tax-exempt, off-road diesel on Texas roads
- Suspends Texas Low Emission Diesel rules down to federal minimums
- Raises allowable weight limits for fuel, agricultural and timber truck loads
- Requests an EPA waiver of federal ultra-low-sulfur diesel requirements
Dyed diesel is diesel colored to mark it as exempt from road fuel tax. Normally restricted to off-road farm and construction use, allowing it on public roads lets that cheaper fuel into trucks, bringing down pump costs. The Texas Farm Bureau confirmed the waiver on September 28, 2026.
The declaration leaves the state’s 20-cent-per-gallon fuel tax in place.
Abbott stated: “Texas agriculture and freight run on diesel. Record prices put both industries at risk and raise costs for every Texas family. Farmers and truckers can now use dyed diesel on Texas roads, and fuel, crop, and timber loads can move at a higher weight.”
Texas Sits Below the National Average Yet Declared a Disaster
Citing AAA data reported by the Texas Tribune and Newsweek, the Texas statewide average diesel price is $5.86 a gallon. It was $3.30 in early February 2026 and $3.17 in September 2025.
Newsweek reported on September 29, 2026 that other states are paying more. Citing Newsweek, the national average is $6.45 a gallon. California stands at $8.39, Washington at $7.42 and Hawaii at $7.15, with 17 other states also above the national average. Price Futures Group analyst Phil Flynn cited the same national and California figures on Fox Business’s Kudlow program on September 28, 2026, giving two independent sources for those numbers.
Crude Is Falling While Diesel Sets Records
The Texas Tribune attributes the price environment to seven months of disrupted Middle East oil and gas exports following coordinated US and Israeli strikes on Iran. GasBuddy confirmed an all-time national diesel record, exceeding the previous high set in 2022.
Brent crude fell from $130.80 on September 15, 2026 to $114.89 by September 22, 2026. Record diesel prices alongside falling crude point to refining capacity constraints. Analyst Phil Flynn made that argument on Fox Business on September 28, 2026.
The U.S. Energy Information Administration’s Short-Term Energy Outlook breaks diesel price changes into three components: Brent crude oil price, wholesale margin over crude, and retail margin over wholesale. When crude falls and pump prices climb, the wholesale margin (a proxy for refining tightness) is where investors should look.
Who Absorbs the Cost First
For most households, diesel is an indirect expense. Freight, agriculture, and construction pay it directly, then pass it through into goods, food, and building costs.
What 30 Days Can and Cannot Fix
Tax relief is also under discussion in Washington. FOX 7 Austin examined on September 28, 2026 how lifts the federal gas tax might affect prices, and Reuters reported the White House is considering red-dyed diesel tax relief. Texas kept its own fuel tax.
The declaration bringing down the effective cost of fuel at the margin by loosening rules on which fuel trucks can burn and how much weight they can haul. It adds no refining capacity and restores no interrupted exports. The order runs 30 days, and the supply problem behind it is older than that.
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AJ spent 10 years writing about financial markets at The Motley Fool. His coverage centers on technology stocks and the broader macroeconomic trends, from interest rates to geopolitics, that shape where markets are headed next. AJ is drawn to the stories where big-picture economics and individual companies collide.
