Texas allows wider use of dyed diesel as war boosts fuel costs
US retail prices have hit a record average of $6.44 a gallon
Texas is allowing wider use of so-called dyed diesel that’s normally limited to off-road vehicles, as a global fuel crunch boosts prices and prompts President Donald Trump to consider banning US exports.
Governor Greg Abbott issued a disaster proclamation on Monday with a range of measures, including a provision that farmers and truckers can now use dyed diesel on Texas roads, according to a statement on his office’s website. Fuel, crop, and timber loads can also move at a higher weight.
Named because it has been dyed red, such diesel is sold without a motor-fuels tax, and so is typically prohibited for vehicles on public roadways, confining its use to agricultural operations and other off-road purposes.
The global market for diesel — used to power trucking, farm equipment and industry — is reeling from the disruption to flows in the critical Strait of Hormuz and Ukrainian attacks on Russian refineries. With pump costs hitting records in America, Trump has mulled a ban on US exports, with analysts warning that such a move could supercharge overseas prices, especially in Europe. US retail prices have hit a record, and are now averaging about $6.44 a gallon.
“Record prices put both industries at risk and raise costs for every Texas family,” Abbott said. “These steps cut costs on the farm, on the road, and at the store.”
Trump said at the weekend that he’s still looking “very seriously” at implementing an export ban, even as others in his administration continue to focus on other possible steps.
Monday’s proclamation by Abbott also suspended the Texas Low Emission Diesel rules as far as the EPA allows.
Source:
Bloomberg
Via:
Bloomberg
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