Landry declares emergency to help farmers, loggers cope with record diesel prices

Key Points:

• Louisiana Governor Jeff Landry declared a state of emergency due to a diesel fuel shortage, allowing farmers and timber harvesters to use dyed diesel fuel in on-road vehicles without state penalties until October 22.
• The executive order suspends the usual $10-per-gallon or $1,000 penalty for using untaxed dyed diesel in Class 2 (forest products) and Class 5 (farm use) vehicles to help alleviate fuel costs during peak harvest season.
• Diesel prices in Louisiana have reached a record high of $6.03 per gallon, more than double the price used in LSU AgCenter's 2026 crop budgets and over 80% higher than last year, driven by a national diesel shortage and low U.S. inventories.
• The state Department of Revenue will request federal penalty relief from the IRS, as dyed diesel use is federally regulated, and the emergency declaration also activates Louisiana’s price-gouging law to prevent unfair price increases.
• The emergency order is effective from September 23 and will expire on October 22 unless extended or modified by the governor.