Louisiana Governor Jeff Landry declared a state of emergency on September 23, letting farmers and timber harvesters use cheaper dyed diesel in highway vehicles during harvest season.

Diesel has reached an all-time high of $6.03 per gallon in Louisiana, according to the governor’s office. That is about 112 percent higher than the price LSU AgCenter economists used to build 2026 crop budgets.

The executive order suspends the state penalty for burning nontaxable, dyed off-road diesel in vehicles registered for farm or forest-products use. The fuel costs about 44 cents less per gallon because federal and state taxes do not apply. The relief runs through October 22, 2026.

Landry also directed the state revenue secretary to ask the IRS for federal penalty relief by the end of the week.

Officials say the shortage is national. US distillate fuel inventories sit 12.5 percent below the five-year average while exports remain near five-year highs.

Farm groups praised the move. The American Sugar Cane League said it could save its farmers more than $8 million over the harvest season.