West Virginia Declares Emergency to Cut Diesel Costs
West Virginia governor declares emergency to allow red diesel on highways, aiming to lower fuel prices amid soaring costs.
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West Virginia Governor Patrick Morrisey has declared a statewide emergency to temporarily allow the use of red-dyed diesel on public highways, aiming to reduce soaring fuel costs. The move comes as diesel prices in the state have surged to $6.34 per gallon, compared to $3.57 a year earlier, according to AAA data.
Emergency Order to Alleviate Fuel Costs
The 60-day emergency declaration suspends penalties for using red-dyed diesel, typically reserved for off-road machinery, on public highways. Morrisey stated that the decision is intended to lower transportation costs, which impact prices at the grocery store and across the economy.
Red-dyed diesel is generally cheaper than regular highway diesel due to its tax treatment. The governor’s office estimates that the policy could save drivers approximately 20.5 cents per gallon, or around $41 on a 200-gallon fill-up.
Federal Support and Concerns
President Donald Trump’s October 5 executive order allowed temporary federal relief for the use of red-dyed diesel on highways, deferring the federal 24.4-cent-per-gallon excise tax through December 31. However, fuel companies have been hesitant to participate without assurances they will not be left responsible for deferred taxes.
The Internal Revenue Service announced it would suspend federal penalties and inspections targeting highway use of dyed diesel through December 31, while additional guidance on postponing tax payments remains forthcoming.
Industry Reactions and Impact
The coal, natural gas, and forestry industries in West Virginia have welcomed the emergency order, citing rising fuel costs as a significant burden. Chris Hamilton of the West Virginia Coal Association stated that the suspension will help reduce cost pressure and improve competitiveness in a difficult market.
James Smith of the West Virginia Forestry Association warned that operating costs are threatening loggers’ ability to remain in business. Rebecca McPhail of the Gas and Oil Association of West Virginia also praised the temporary flexibility, noting the pressure on producers and service companies.
West Virginia’s motor fuel excise tax and commercial vehicle safety inspections will remain in effect, according to the governor’s office. The emergency declaration takes effect immediately and will last 60 days unless ended earlier.
Source: Daily Caller
