Kentucky Governor allows dyed diesel on roads to lower fuel costs

Kentucky Governor Andy Beshear has declared a state of emergency to allow farmers and truckers to use untaxed or dyed diesel fuel on public roads. The move aims to provide relief from rising fuel costs attributed to the ongoing war in Iran.

The order, which received approval from Attorney General Russell Coleman, follows a federal executive order from President Donald Trump that loosened restrictions on the use of tax-exempt dyed diesel. The state-level measure will remain in effect until the end of the conflict in Iran or until the federal order expires on December 31, 2026, whichever occurs first.

Kentucky Agriculture Commissioner Jonathan Shell expressed support for the decision, noting it would assist farmers transporting agricultural products during the fall harvest. This action follows a previous emergency regulation by Beshear in May to freeze the state gas tax at 26.4 cents per gallon.