Use of Dyed Diesel Fuel Allowed for use on Tennessee Roads and Highways

Close-up of colorful diesel fuel pump nozzles with text reading, “Use of Dyed Diesel Fuel Allowed for Use on Tennessee Roads & Highways

Tennessee has temporarily suspended enforcement of dyed-diesel restrictions for qualifying agricultural and forestry highway use through the end of October, alongside a federal executive order intended to reduce diesel costs during harvest.

Tennessee directive

  • Gov. Bill Lee directed state agencies to stop enforcing dyed-diesel restrictions for people engaged in agricultural or forestry operations while hauling crops, livestock, timber, forest products, and related supplies or equipment on Tennessee highways.

  • The directive applies through the end of October and asks agencies to issue guidance for farmers, timber harvesters, and fuel vendors.

  • It does not change Tennessee vehicle weight limits. Agricultural haulers may still use the existing 10% weight-limit variance allowed under state law.

  • The revenue commissioner was instructed to seek federal penalty relief from the IRS, and local governments and law enforcement were encouraged to support agricultural operations.

Federal action

  • President Trump’s executive order temporarily permits dyed diesel for highway use and directs Treasury to defer federal excise-tax payments for the rest of the year without interest or penalties, while exploring whether those deferred taxes can be eliminated.

  • It also directs federal transportation and agriculture officials to coordinate with states and industry, help ensure access in high-demand areas, and encourage comparable state policies.

  • The White House estimates savings of more than $100 per refill for farmers, truckers, and other workers.

TFA encourages logging and wood products companies to keep fuel receipts during this time should dye residue remain in fuel systems after the use of dyed fuel on roads is lifted sometime in the future.

TFA would also like to thank Senator Page Walley from Bolivar/District 26 and Senator Jessie Seal from Tazewell/District 8 for writing letters and making contacts with Governor Lee and his staff on behalf of loggers and forest industry to ensure the use of dyed fuel on Tennessee roads during this unprecedented time of high fuel costs.

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