Michigan Governor Whitmer Allows Tax-Free Diesel Use on Public Roads

Michigan’s Move to Aid Farmers and Loggers Amid Diesel Price Surge

As the autumn harvest season begins, Michigan is taking a significant step to support its agricultural and logging industries. Governor Gretchen Whitmer has enacted an executive order that permits the use of tax-free dyed diesel on public roads, a measure that could alleviate some financial strain on these sectors.

Traditionally, dyed diesel—a tax-exempt fuel distinguished by its red color—is reserved for heavy machinery and rural applications, prohibited from use on public roadways. The executive order now extends its use to vehicles with farm or wood harvester plates, allowing them to operate on public roads with dyed diesel. Read the executive order here.

Governor Whitmer, criticizing the ongoing Iran conflict, noted its impact on the economy, stating it “continues to raise the price of everything.” The average cost of diesel in Michigan has soared to over $6.48 per gallon, nearly $3 more than the previous year, although recent prices have dipped slightly from a record high.

Justin Knepper, representing the Michigan Association of Timbermen, expressed gratitude for the governor’s decision. However, he emphasized the severe impact of fuel costs on the industry, saying, “It has destroyed people’s livelihoods. I mean, there’s companies going out of business.”

Knepper also highlighted other economic pressures, such as increasing mortgage rates, affecting the forestry sector. While he acknowledges that the executive order offers “some relief in an unprecedented period of time for fuel prices,” it primarily benefits those buying fuel in bulk. “This allows companies that maybe buy their fuel in bulk, the diesel off-road fuel in bulk, to just be able to fill up, save on that tax,” he explained.

Michigan joins a growing list of states easing restrictions on dyed diesel. Notably, President Donald Trump recently signed a similar order to allow its usage on public roads, reflecting a broader trend in response to the escalating fuel prices.