Stein directs temporary penalty relief for on-road use of dyed diesel fuel
RALEIGH, NC (WWAY) — Gov. Josh Stein is directing state officials to temporarily provide penalty relief for the use of dyed diesel fuel on North Carolina highways as farmers contend with high fuel costs during harvest season.
Stein announced Wednesday that he directed North Carolina Department of Revenue Secretary McKinley Wooten to provide the relief through the end of 2026.
Dyed diesel is generally intended for off-road uses and is not subject to the same fuel taxes as diesel used in highway vehicles. Stein’s action is intended to allow agricultural producers who already have supplies of dyed diesel for off-road use to use that fuel in highway vehicles without facing the state prohibition’s penalties during the temporary relief period.
Stein also sent a letter to the Internal Revenue Service requesting similar relief from federal penalties.
The governor’s office said the action is intended to reduce fuel costs for farmers during harvest season, when agricultural operations can require significant amounts of diesel.
“North Carolina farmers have been feeling the squeeze of tariffs, drought conditions, crop loss, and skyrocketing diesel prices,” Stein said. “Today I am working to ease the burden on farmers during their most fuel-intensive time of year and reduce the upward pressure on the cost of food.”
Diesel supplies have tightened nationally. The U.S. Energy Information Administration has forecast distillate inventories, which include diesel fuel, to remain below the five-year low through the end of 2026 and much of 2027.
EIA data show U.S. distillate inventories stood at about 107.4 million barrels for the week ending Sept. 18.
The North Carolina Farm Bureau had asked Stein to take action on diesel costs. Farm Bureau President Shawn Harding said diesel expenses have been a major concern for farmers during the current harvest season.
The state penalty relief is expected to remain in place through the end of 2026. Stein’s request for similar federal relief would require action from the federal government.
