Monday marked seven months since the U.S.-Iran war began, which has restricted oil and gas exports from the Middle East, raising prices ahead of the Nov. 3 election.
Gov. Greg Abbott declared a statewide disaster on Monday over soaring diesel prices and a worsening fuel shortage created by wars abroad.
The 30-day disaster declaration, which can be extended indefinitely, allowed Abbott to lift some restrictions on commercial transportation, which he said will alleviate some of the elevated costs. Diesel fuel is used in farming and commercial shipping, so elevated fuel prices are passed through to consumers in the form of higher costs for goods at the grocery store.
The declaration expands the use of dyed diesel on Texas roads, suspends Texas Low Emission Diesel rules to the limit the federal government authorizes and raises the allowable weight for fuel, agricultural and timber loads. The governor also requested the U.S. Environmental Protection Agency to waive federal ultra-low sulfur diesel requirements to boost supply.
“Texas agriculture and freight run on diesel,” Abbott wrote in a statement. “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. These steps cut costs on the farm, on the road and at the store.”
Dyed diesel is chemically the same as regular diesel available at gas stations, but it is tinted the color red and used in off-road farm and construction equipment. Because it’s exempt from federal and state motor fuel road taxes, typically its use on public roads is prohibited and violators are subject to fines for tax evasion, according to state law.
Removing restrictions on the use of dyed diesel could reduce prices by increasing the supply of diesel available for everyday use.
Abbott’s order does not waive the underlying fuel tax, which is a flat 20 center per gallon on both gasoline and undyed diesel.
The governor’s disaster declaration and order comes as AAA reports an average diesel price of $5.86 per gallon in Texas. Monday also marks seven months since the U.S. and Israel launched coordinated strikes on Iran, leading to an extended disruption of oil and gas exports from the Middle East. The ongoing conflict has created elevated gas and diesel prices across the world.
Diesel was $3.30 per gallon in Texas in early February.
Affordability has become central to election season in the U.S. ahead of the Nov. 3 midterm elections. Abbott and other statewide Republican officials face competitive elections in a state that no Democrat has won statewide in since 1994.
Abbott’s opponent, Democratic state Rep. Gina Hinojosa, called on the governor to waive the state gas tax. Abbott’s office has argued he does not have the ability to unilaterally waive taxes.
The Texas Democratic Party reiterated that position in a statement on Monday, calling on Abbott to suspend the gas tax altogether and blaming President Donald Trump’s foreign policy for the high prices.
“Abbott must also demand that Donald Trump lift his absurd tariffs and halt the unnecessary war that are driving up costs for Texans,” TDP executive director Terri Burke said. “Abbott cannot keep asking working families to shoulder the burden of his political loyalty to Trump while Texans pay the price.”
In 2024, Abbott last waived restrictions on dyed diesel amid wildfires in The Panhandle.
Source: Texas Tribune BY Paul Cobler
Photo: A Chevron gas station in Austin on Aug. 26, 2026 shows the still-spiraling cost of diesel fuel. Jacob Lujan/The Texas Tribune
