Nik Rajkovic / news@whmi.com

Governor Gretchen Whitmer on Monday declared a state of energy emergency statewide to suspend rules for certain farm and forestry vehicles in response to record-high diesel prices and ongoing supply chain disruptions stemming from the ongoing conflict in Iran.

According to Whitmer's office, Michigan’s agricultural producers and loggers—now at the peak of harvest season—are facing severe financial strain due to tightened global fuel supplies and historic market volatility.

“The Iran War, supported by DC Republicans, continues to raise the price of everything, and exorbitant diesel prices are hitting Michigan’s farmers and loggers hard right in the middle of harvest season,” said Governor Whitmer.

“While I can’t control what’s happening at the federal level, I can try to protect Michigan’s economy. This order will allow farm and logging vehicles to use dyed diesel on our highways without risk of penalty. We need to keep work moving and reduce pressure on the people who keep our state’s ag economy running.”

The executive order temporarily authorizes motor vehicles with farm or wood harvester license plates to use dyed diesel fuel while operating on public roads by suspending specific provisions of the Motor Fuel Tax Act that prohibit the on road use of dyed diesel by these vehicles.

The order is effective immediately and will end no later than Dec. 31, 2026, in order to support the agriculture and forestry industries through fall harvest.

Whitmer's orders follows one signed by President Donald Trump last week - allowing tax-free red dye diesel to be used in vehicles that travel on roads.

The blend of diesel is most used by farmers. The White House is opening the tap to truckers and drivers of diesel vehicles in an effort to slash costs that trickle down to consumers.

AAA reports Michigan's average price for a gallon of diesel is $6.51. That's less than the late September peak of $6.89, but still elevated.

The federal diesel tax is about 24 cents per gallon, and the White House projects savings will top one hundred dollars per fill.

However, there are no gas stations or truck stops in the state that carry dyed diesel for road use, meaning the 52-cent state tax on diesel remains in place, so there are no savings.

"Right now, we sell dye diesel fuel to a very small group of individuals, end users," Mark Griffin, president of the Michigan Petroleum Association said. "As a matter of fact, if you look at it, if you aren't one of the allowed classes, it's illegal to even have dye diesel in your vehicle on the road."

Use of dyed diesel is limited to places like farms for tractors. Due to its tax-free nature, Michigan State Police motor carrier units check for dye when inspecting trucks.

"It's not just police, it's also the IRS, Treasury agents, they look for that type of usage because it's a potential tax fraud," Griffin said.

Diesel retailers, represented by the association, are still waiting for guidance from the IRS.