Texas receives temporary diesel fuel waivers to address supply issues

Texas Governor Greg Abbott has secured temporary waivers to expand the use of low-sulfur and dyed diesel fuel to combat high prices and supply disruptions. The Environmental Protection Agency (EPA) granted a waiver through October 24, allowing the use of 500 ppm low-sulfur diesel in older highway and nonroad vehicles. This measure follows record diesel prices in Texas, which reached approximately $5.97 per gallon in late September.

While the waiver provides relief, the EPA and engine manufacturers have issued significant warnings. The low-sulfur fuel can cause serious damage to newer engines equipped with modern emissions systems, such as diesel particulate filters or selective catalytic reduction. Cummins has stated that warranty coverage will be denied for damage resulting from the use of incorrect fuel in newer engines. Additionally, fuel distributors are directed to warn customers against misuse.

Regarding dyed diesel, also known as red diesel, Governor Abbott’s disaster proclamation temporarily suspends restrictions and penalties for its use on public roads. However, the Texas Comptroller noted that the state’s 20-cent-per-gallon diesel tax still applies. Drivers using red diesel on highways must ensure they account for the tax, and officials are working to provide specific payment instructions.