Michigan temporarily allows agriculture, logging equipment to use dyed diesel on highways
In response to high fuel prices, Michigan will allow certain agricultural vehicles to use red-dyed diesel on state highways until Dec. 31.
Gov. Gretchen Whitmer declared a state of emergency on Monday, issuing a temporary suspension, effective immediately, of the diesel fuel rules to support Michigan's farming and logging operations. Michigan's agricultural producers and loggers are now in the peak of their harvest season, and this executive order lasts through Dec. 31.
Dyed diesel is intended for off-road equipment. It is less expensive than regular diesel because federal and state motor vehicle taxes are not collected. The red dye allows law enforcement to easily determine which fuel mix a vehicle is currently using.
Whitmer's executive order authorizes highway-licensed vehicles in specific industries to temporarily use the less expensive fuel. President Trump issued an executive order on Oct. 6, waiving the restriction on the use of red-dyed diesel, although it remained to be seen if the federal highway tax would be collected at a later date.
"The War in Iran has disrupted global oil markets, and as a result, Michiganders have faced the highest increase in year-over-year average gas prices in the United States," Whitmer said. "The federal government created this problem and can fix it. I have tried to do what I can to help lower costs."
Diesel fuel in Michigan is currently retailing at an average of $6.48 a gallon, according to AAA's gas price database. That fuel, used by many commercial vehicles, hit a record high price in Michigan of $6.89 per gallon on Sept. 23.
Ohio and Indiana are among the states that temporarily halted state fuel tax collections in recent months in response to the spike in oil prices and, subsequently, in retail prices for unleaded and diesel fuel. That step was introduced in Lansing, but has not seen action from state lawmakers.
Whitmer told CBS Detroit on Oct. 2 that she would prefer to see federal taxes pulled back rather than state taxes.
"We'll continue to look at other ways that maybe we can give people relief. But I'm not going to weigh in on something that may or may not ever see my desk," Whitmer said.
One step that Michigan took, with Whitmer's sign-off, was to pull back on the requirement to use a more expensive "summer blend" of gasoline this year in Metro Detroit. The reformulated summer gas rules were introduced in 1996 to reduce smog-causing emissions.
The above video originally aired on Sept. 18, 2026.
