Diesel Tax Relief Has Limits For West Texas Agriculture

A new executive order aims to ease diesel costs for West Texas farmers and freight operators, but federal action has limits.

President Donald Trump signed the order October 5, directing Treasury to determine eligibility for deferring taxes on highway use of dyed diesel and providing penalty relief. It addresses taxes incurred through December 31.

The national diesel average reached about $6.30 Wednesday, more than 70% above a year earlier. Industry representatives said relief on a federal tax of roughly 24 cents per gallon would not cover the full increase.

Farmers already use dyed diesel in tractors and combines. Broader highway use could matter more for those hauling livestock or crops.

States have their own fuel taxes and rules. Savings for a South Plains operation will depend on implementation, its routes and applicable state requirements.

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Photo Via KSBY