Idaho Gov. Little suspends dyed diesel inspection to ease costs for farmers as Iran War continues

Idaho Gov. Brad Little signed an executive order Friday to suspend for 30 days state inspections of dyed diesel fuel in an attempt to lower costs for farmers and ranchers, according to the governor’s office. 

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Dyed diesel is diesel fuel with red dye in it and is exempt from federal and state motor fuel taxes. The tax-exempt fuel is only meant for certain approved off-road uses, such as for farming equipment, construction equipment and home heating. The dye helps regulators enforce this requirement. 

Idaho’s average diesel price was around $6.41 per gallon as of Friday, according to AAA fuel prices. Prices for oil products have risen this year largely because of restrictions on ships passing through the Strait of Hormuz amid the U.S. and Israel’s war with Iran, which have disrupted global supply chains. Diesel supplies have been in particularly short supply, NPR reported, and Ukraine’s attacks on Russian refineries have also affected global supplies. 

On Monday, President Donald Trump signed an executive order to allow dyed diesel on highways and prohibit the Internal Revenue Service from imposing the typical penalties for doing so. Some state restrictions remain on the fuel. 

Little’s order signed Friday directs Idaho State Police and the Idaho Transportation Department to suspend inspection for dyed diesel while the agencies review Idaho’s policies and procedures, his office announced in a press release. The review will consider other state’s approach to dyed diesel enforcement and the agencies will make recommendations to Little for “efficient, effective, and practical inspection,” the release said. 

Little said in the press release that the timing of the order is meant to ease costs during harvest season. 

“Idaho farmers and ranchers work hard to feed our families, our country, and the world,” Little said in the release. “President Trump has made cutting red tape a priority, and Idaho is doing the same. We will continue looking for ways to give our farmers, ranchers, and working men and women on the road more freedom to do what they do best.”

Legislative leaders in written statements said they supported the governor’s decision. 

“Idaho farmers and ranchers are facing high costs across the board, and expensive diesel is adding to the pressure during harvest,” Senate President Pro Tempore Kelly Anthon, R-Declo, said in the release. “This order provides some immediate relief while giving the state time to review these requirements and find a practical approach that supports our producers without adding unnecessary costs or red tape.” 

House Speaker Mike Moyle, R-Star, said suspending the inspections while the state reviews its policies “is a practical approach that puts common sense first and gives Idaho producers one less thing to worry about during harvest.”