Tennessee Governor Bill Lee announced that he directed state departments last week to suspend enforcement of restrictions on dyed diesel fuel through the end of October, citing the need to provide relief to farmers and foresters during harvest season.
Lee’s announcement followed President Donald Trump’s Monday executive order directing federal agencies to temporarily allow off-road dyed diesel to be used on highways and defer certain federal diesel fuel tax obligations through the end of the year.
On Friday, I directed TN state departments to suspend enforcement of dyed diesel restrictions through the end of October to provide relief for farmers & foresters during harvest season.
Thank you, @RealDonaldTrump, for standing with the Tennesseans who feed & fuel our country. https://t.co/cNQKlgdFJr
— Gov. Bill Lee (@GovBillLee) October 6, 2026
“On Friday, I directed TN state departments to suspend enforcement of dyed diesel restrictions through the end of October to provide relief for farmers & foresters during harvest season,” Lee said in a post on X. “Thank you, [President Trump], for standing with the Tennesseans who feed & fuel our country.”
Dyed diesel is typically used for off-road purposes, including agriculture, construction and heating, and is dyed red so authorities can distinguish it from taxed on-road diesel.
Under normal circumstances, using dyed diesel on highways can result in penalties and back taxes.
Trump’s executive order directs the Treasury Department to determine whether certain diesel fuel tax obligations incurred between October 5 and December 31 can be deferred without penalties or interest. It also directs the Internal Revenue Service to provide penalty relief for the sale or use of dyed diesel on highways during that period.
The order also directs the Department of Transportation and Department of Agriculture to coordinate with states and agricultural stakeholders to facilitate access to dyed diesel, particularly in high-demand areas.
The White House said the temporary relief is intended to address rising diesel prices amid restricted global supply, which it claimed is “driven by the Russia-Ukraine war and a lack of refining capacity around the world,” and lower costs for farmers, truckers, and other workers.
According to the White House, the measure could save truckers more than $100 per refill. The administration also said it is seeking to explore ways to eliminate the obligation to repay deferred federal diesel taxes.
AAA reported Tuesday that the national average price for diesel was $6.3151 per gallon, while Tennessee’s average stood at $6.0310 per gallon.
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network.
