Texas Governor Declares Disaster to Curb Record Diesel Prices

Key points

• Abbott’s order suspends restrictions on dyed diesel, which is exempt from federal and state road taxes, allowing it to be used on public highways.
• The proclamation increases allowable gross weights for fuel, agricultural, and timber loads to 95,000 pounds and suspends certain low-emission rules.
• Abbott requested the EPA to waive federal ultra-low sulfur diesel requirements to boost supply, citing global export disruptions.
• The order does not waive the 20-cent per gallon fuel tax, a measure Democrats argue is necessary to provide real relief.
• The crisis is linked to a seven-month-old conflict involving the U.S., Israel, and Iran, which has disrupted Middle East oil exports.

Background

This action follows similar emergency declarations in Louisiana and Germany, where leaders suspended penalties or lowered taxes to combat rising fuel costs. Texas had previously waived dyed diesel restrictions in 2024 during wildfires. The current price surge, with diesel averaging $5.86 per gallon, is significantly higher than the $3.30 seen in early February.

How outlets are covering it

The Washington Post and The Texas Tribune emphasize the political context, noting Abbott’s tight reelection race against Gina Hinojosa and the pressure to suspend the fuel tax. The Texas Farm Bureau supports the move, stating it helps relieve high production costs for farmers. FOX 7 Austin highlights the broader global context, including Russia’s diesel export ban and low inventories. Democrats, including the Texas Democratic Party, criticize Abbott for not waiving the tax and blame President Trump’s foreign policy for the price spike.

Why it matters

The decision impacts the cost of goods for all Texans, as higher diesel prices increase the cost of food and freight. It also sets a precedent for how state governments can respond to energy crises without federal tax relief, influencing the political landscape ahead of the November 3 midterms.

What to watch

The 30-day disaster declaration can be extended indefinitely. The outcome of the EPA waiver request will determine if additional fuel types can be sold in Texas. The political debate over fuel tax suspension will likely intensify as the election approaches.