As harvest season gets underway, Gov. Gretchen Whitmer signed an executive order Monday allowing farmers and loggers to use tax-free diesel on public roads.
Dyed diesel is untaxed, and normally only used in heavy machinery in remote areas. Under normal circumstances, it cannot be used on public roads. There is no difference between dyed and regular diesel, but dyed diesel is given a color dye to differentiate it.
This executive order allows “motor vehicles with farm or wood harvester license plates to use dyed diesel fuel while operating on public roads,” according to a statement from Whitmer.
In that statement she 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.
Justin Knepper is with the Michigan Association of Timbermen, a group that represents the interests of the forest product industry. Knepper said they're grateful for Whitmer's order, but fuel prices are hurting business.
"It has destroyed people's livelihoods. I mean, there's companies going out of business,” he said.
He added that other economic factors like rising mortgage prices in construction 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, he 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.
