LANSING, Mich. (Michigan News Source) – President Donald Trump made the first move to ease diesel fuel restrictions last week, and Michigan Democratic Governor Gretchen Whitmer followed suit Monday, giving Michigan farmers and loggers a temporary break from rules that could make their already expensive operations even more costly.
The bottom line? Certain farmers and loggers can now use cheaper, red-dyed diesel fuel in qualifying vehicles on Michigan public roads and highways without running afoul of the state’s usual fuel restrictions.
Trump Gets the Ball Rolling
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On October 5, Trump signed a federal executive order addressing restrictions on dyed diesel fuel as energy prices climbed amid supply disruptions associated with the Iran War. The president also encouraged governors to take similar action at the state level because federal relief alone wouldn’t eliminate state restrictions.
Whitmer Gives Michigan Farmers and Loggers the Green Light
Seven days later, Whitmer signed Executive Order 2026-15, declaring a state of energy emergency statewide and temporarily suspending portions of Michigan’s Motor Fuel Tax Act that restrict vehicles with farm or wood harvester license plates from using dyed diesel on public roads. The exemption takes effect immediately and ends no later than December 31, 2026.
So, What Exactly Is Dyed Diesel?
Dyed diesel is essentially the same diesel fuel sold at gas stations, except it contains a red dye identifying it as fuel intended primarily for off-road use.
Because it is generally exempt from highway fuel taxes, it’s cheaper than regular clear diesel. Farmers use it in tractors, combines and other agricultural machinery. Loggers use it to operate heavy equipment, and construction companies use it in bulldozers, excavators and generators.
The catch? Using untaxed dyed diesel on public roads and highways is generally prohibited because the fuel taxes that help pay for roads haven’t been collected.
What Changes for Michigan Farmers and Loggers?
Imagine a farmer who needs to drive a diesel-powered tractor from one field to another using a public road. Or a logger moving qualifying equipment between job sites.
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Under the usual restrictions, operating those vehicles on public roads with dyed diesel could violate state fuel laws, even though the same fuel is perfectly acceptable for off-road work.
Whitmer’s order temporarily removes that state restriction for qualifying farm and wood harvester vehicles, allowing operators to use the less-expensive fuel for those trips without having to switch to higher-priced clear diesel.
That could mean meaningful savings for businesses already dealing with rising fuel costs, although the actual savings will depend on fuel consumption and the amount of qualifying road travel.
How Many Will Benefit?
Michigan has approximately 44,000 farms, according to the U.S. Department of Agriculture, along with more than 800 logging and trucking firms in the forest products industry, according to the Michigan Department of Natural Resources. That’s more than 44,800 operations in industries potentially affected by diesel costs. However, not all qualify for the temporary relief, which applies specifically to vehicles with qualifying farm or wood harvester license plates. State officials have not provided an estimate of how many businesses or vehicles will actually benefit.
Same Relief, Different Political Spin
While Whitmer’s action follows Trump’s federal directive, her announcement made no mention of the president’s earlier order. Instead, she pointed to the Iran War, which she characterized as supported by Washington Republicans, as a reason diesel prices have skyrocketed.
Regardless of who gets the political credit, Michigan farmers and loggers now have some temporary breathing room. And with harvest season underway, they’ll likely be more interested in saving money at the fuel pump than debating which politician deserves the thank-you note.
