Gov. Landry’s order waives some limits on off-road diesel use to lower fuel costs

Farmers and timber harvesters can use off-road diesel fuel for all purposes for the next 30 days under an executive order Gov. Jeff Landry issued Wednesday. 

The governor cited soaring prices for diesel fuel as the reason behind his action. He’s also called on the Trump administration and Congress to halt all diesel exports for 90 days to address the high costs.  

“We’re not going to sit on the sidelines while Louisiana farmers are paying record prices to harvest the crops that feed our families and support our economy. We have an opportunity to provide immediate relief, and that’s exactly what we’re doing,” Landry said in a statement from his office.

The executive order applies to what’s known as dyed diesel, which is intended for off-road uses such as tractors, heavy equipment and irrigation systems. Louisiana does not apply its 20-cent-per-gallon motor fuel tax to off-road diesel, which is tinted red to distinguish it from regular diesel fuel

Landry’s executive order is in effect through Oct. 22 and applies to vehicles registered as Class 2 (forest products) and Class 5 (farm use). The governor has also directed the state revenue department to ask the Internal Revenue Service for relief from any penalties that might result from the state suspending its off-road diesel use limitations. The federal government tax on diesel is 24.4 cents per gallon, though it is not assessed on off-road fuel.

The average price per gallon for diesel fuel in the U.S. has exceeded $6 for the past two weeks, setting a new record. According to the governor’s office, this level is 112% higher than LSU AgCenter forecasters projected when they calculated their forecast for farmers’ crop budgets in 2026.

Higher demand for diesel in European markets is behind the higher prices, according to market analysts. The global supply has been disrupted by Russia’s ongoing war against Ukraine as well as the ripple effects of the conflict between the U.S. and Iran.   

President Donald Trump said Tuesday his administration would make a decision soon about whether to embargo U.S. fuel exports in response to high prices. The refining industry has said it would most likely curb production of diesel if foreign shipments are stopped, which analysts say would not create the desired cost relief.