Gov. Greg Abbott declared a statewide disaster over record diesel prices Monday, Sept. 28, opening the door for cheaper fuel on Texas roads.
The 30-day proclamation, which covers all 254 Texas counties, lets truckers and other operators use dyed diesel on public highways. Dyed diesel is off-road fuel, marked red and normally sold without the state motor-fuels tax. State law typically bars it from road use. The governor's office said the move aims to increase supply and lower pump prices for farmers, truckers and consumers.
The order also suspends oversize and overweight permitting rules for vehicles carrying fuel, agricultural, or timber products, raising the allowable gross weight to 95,000 pounds. It suspends Texas Low Emission Diesel (TxLED) rules to the extent the U.S. Environmental Protection Agency (EPA) authorizes.
Abbott separately asked EPA Administrator Lee Zeldin for a temporary Clean Air Act waiver of federal ultra-low sulfur diesel requirements across 110 Texas counties. That request had not been granted or denied as of Tuesday, Sept. 29.
Diesel prices surge since February
AAA reported an average diesel price of $5.86 per gallon in Texas as of Sept. 28, according to the Texas Tribune. Diesel was $3.30 per gallon in Texas in early February. Nationally, AAA recorded a record average of $6.53 per gallon the week of Sept. 21, Houston Public Media reported. A year ago, the national average was $3.69.
One social media user reported paying $5.75 per gallon at a Walmart in The Woodlands on Friday, Sept. 25.
Russia's ban on diesel exports in July 2026 and the ongoing U.S. and Israel war with Iran have driven U.S. distillate fuel inventories to their lowest seasonal levels since tracking began in 1982, FOX 7 Austin reported. The closure of the Strait of Hormuz and damage to Middle Eastern energy infrastructure have choked global supply.
What it means for The Woodlands
The proclamation does not waive the underlying state fuel tax, a flat 20 cents per gallon on gasoline and undyed diesel. But by allowing dyed diesel on roads, it could lower prices by expanding the available supply, the Texas Tribune reported.
Diesel powers farming and commercial shipping, and higher fuel costs get passed to consumers through grocery and retail prices. The Woodlands sits along the I-45 corridor, a major freight route between Houston and Dallas.
Abbott said in a statement that the steps would cut costs for farmers, truckers and shoppers. He last waived dyed diesel restrictions in 2024 during Panhandle wildfires.
Political response
State Rep. Gina Hinojosa, Abbott's Democratic challenger in the Nov. 3 election, called on the governor to waive the state gas tax entirely. Abbott's office has said he does not have the authority to unilaterally waive taxes.
Texas Democratic Party executive director Terri Burke said Monday, Sept. 28, that Abbott should "demand that Donald Trump lift his absurd tariffs and halt the unnecessary war that are driving up costs for Texans."
The 30-day declaration runs through approximately Oct. 28. No Woodlands Township Board or Montgomery County Commissioners Court agenda item on the topic has been announced.
