- Gov. Jeff Landry has declared a state of emergency over Louisiana’s diesel fuel shortage, giving farmers and timber harvesters a way to stretch their fuel supply during peak harvest season. The executive order, signed September 22 and effective September 23, temporarily suspends state penalties for using “dyed diesel” — untaxed, off-road fuel typically reserved for tractors, skidders and irrigation pumps — in vehicles registered for on-road use. The suspension applies specifically to vehicles registered as Class 2 (forest products) or Class 5 (farm use). “We’re not going to sit on the sidelines while Louisiana farmers are paying record prices to harvest the crops that feed our families and support our economy. We have an opportunity to provide immediate relief, and that’s exactly what we’re doing,” Landry said in a statement. Under normal state law, using dyed diesel in a highway-registered vehicle carries a penalty of $10 per gallon or $1,000, whichever is greater. The executive order blocks state agencies from enforcing that penalty against qualifying farm and forestry vehicles through October 22. The move comes as diesel prices in Louisiana have hit an all-time high of $6.03 per gallon — more than double the $2.85-per-gallon price the LSU AgCenter used to build its 2026 crop budgets, and more than 80% higher than prices a year ago, according to the order. The order also directs the state Department of Revenue to formally request matching penalty relief from the IRS, since dyed diesel is regulated at the federal level as well. That request is expected to go out by the end of the week. State officials point to a national diesel shortage as the driver behind the price spike. Federal energy data cited in the order shows U.S. diesel inventories are running well below the five-year average, even as fuel exports remain near record highs — a combination officials say has pushed domestic prices upward. Because the emergency declaration is in effect statewide, it