Michigan farmers and loggers are getting a break at the fuel tank as prices climb across the country.
Gov. Gretchen Whitmer declared a state of energy emergency on Oct. 12, 2026, allowing certain farm and logging vehicles to run on dyed diesel while driving on public roads.
What does the energy emergency do?
It temporarily changes the rules on dyed diesel. The fuel is essentially the same as regular diesel but is dyed red to show it is meant for equipment used off public roads, such as tractors and other farm machinery.
Because it is intended for use away from highways, dyed diesel is exempt from fuel taxes that help pay for road maintenance. That typically makes it cheaper than the diesel sold at the pump. Authorities enforce the rule partly by checking fuel tanks for the red dye during roadside inspections.
Whitmer’s order suspends parts of the state’s Motor Fuel Tax Act that normally prohibit using dyed diesel in vehicles licensed for highway use. Under the energy emergency, eligible farm and logging vehicles can now use it on public roads.
Why did Whitmer declare an energy emergency?
She cited disruptions to global oil markets caused by the war in Iran. Whitmer also said Michigan has seen the largest increase in average gasoline prices in the nation compared with a year earlier.
In her order, Whitmer said farmers and loggers are dealing with record diesel prices, thin profit margins and sharp swings in their markets. Some of those costs end up being passed on to consumers, she noted.
She wrote that these industries already buy and store large supplies of dyed diesel for their equipment. Letting eligible vehicles use that fuel on the road, she said, would bring immediate relief during the energy emergency.
How high are fuel prices right now?
Prices have climbed sharply this year. Federal data released Oct. 14 showed gasoline prices nationwide were up 34% from a year earlier, helping push annual inflation to 3.7% in September.
The national average for regular gasoline topped $4.30 a gallon in September, according to AAA, and stood near $4.37 in early October.
Energy markets have been strained by fighting involving Iran and disruptions to shipping through the Strait of Hormuz, a critical route for global oil supplies.
Who benefits from the energy emergency?
Farmers and loggers are the main beneficiaries. Both industries rely heavily on diesel to power trucks, tractors and other equipment, and fuel is one of their biggest operating costs.
Fall is a busy season for many Michigan farms as harvest wraps up, which can increase the need to move crops and equipment on public roads. Logging trucks also travel long distances to haul timber from forests to mills, especially in the Upper Peninsula and northern Lower Peninsula.
Consumers could benefit indirectly if lower fuel costs help slow price increases for food and wood products.
Are there concerns about the energy emergency?
Using untaxed fuel on public roads means less money flowing into state accounts that fund road repairs while the order is in effect. It was not immediately clear how much revenue the state could lose.
Emergency fuel orders like this are typically temporary and limited in scope. Other states have used similar measures during supply shocks or severe weather to keep critical industries running. A state order cannot change federal fuel tax rules, which also govern dyed diesel.
Whitmer, a Democrat, is serving her final months in office. Her term ends in January, and Michigan voters will choose her successor in the Nov. 3 election. The energy emergency gives farmers and loggers some breathing room as the state heads into winter.
