As harvest season gets underway, Governor Gretchen Whitmer signed an executive order Monday allowing farmers and loggers to use tax-free diesel on public roads.
Dyed diesel is untaxed, and typically only used in heavy machinery or in remote areas. Under normal circumstances, it cannot be used on public roads. There is no chemical difference between dyed and regular diesel, but the dyed fuel colored red to indicate that it's tax-free.
The executive order allows "motor vehicles with farm or wood harvester license plates to use dyed diesel fuel while operating on public roads."
In a statement announcing the order, Whitmer slammed the Iran war, saying it "continues to raise the price of everything." According to AAA, diesel currently costs over $6.48 per gallon in Michigan, on average. That's close to $3 a gallon more expensive than this time last year, although it's down from a record high less than a month ago.
Justin Knepper with the Michigan Association of Timbermen, a group that represents the interests of the forest product industry, said the group is grateful for Whitmer's order, but fuel prices have already hurt business.
"It has destroyed people's livelihoods. I mean, there's companies going out of business," he said.
Knepper added that other economic factors like rising mortgage prices are creating slowdowns across the forest product industry.
He said Whitmer's order will provide "some relief in an unprecedented period of time for fuel prices." He added that "it's not been like this in most people's collective memories for the diesel side." he said.
Still, Knepper acknowledged that the executive order only helps specific segments of the industry.
"This allows companies that maybe buy their fuel in bulk, the diesel off-road fuel in bulk, to just be able to fill up, save on that tax,"
Michigan is one of several states that have lifted restrictions on dyed diesel. President Donald Trump also signed an executive order allowing dyed diesel on public roads last week.
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