Beshear allows dyed diesel on Kentucky roads to ease costs for farmers, truckers

FRANKFORT, Ky. (LEX NEWS) — Gov. Andy Beshear on Wednesday declared a state of emergency that will allow Kentucky farmers and truckers to use untaxed, dyed diesel fuel on public roadways in an effort to reduce fuel costs tied to the ongoing war in Iran.

The emergency order, which is pending approval from the Kentucky attorney general, is scheduled to take effect Thursday.

Dyed diesel is typically restricted to off-road uses such as farm equipment and other non-highway vehicles because it is exempt from certain fuel taxes. Under Beshear's order, farmers and truckers will be temporarily allowed to use the fuel on public roads.

The governor said the move is intended to provide financial relief as fuel and consumer costs continue to rise.

The action follows an executive order signed by President Donald Trump that loosened federal restrictions and allows use of tax-exempt dyed diesel on roadways. Beshear’s order will remain in effect until either the end of the war in Iran or Dec. 31, 2026, when the federal order is set to expire, whichever comes first.

In May, the governor froze Kentucky’s gas tax at 26.4 cents per gallon instead of allowing it to increase to 27 cents on July 1. The administration estimated that move would save Kentuckians about $1.7 million each month.

Beshear also previously declared a state of emergency related to gasoline prices, temporarily reducing the gas tax by 10 cents per gallon. State officials estimated that measure would save Kentuckians nearly $27 million over a one-month period. The governor also activated Kentucky’s price-gouging law to help ensure fuel retailers passed savings on to consumers.

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