Trucking Laws · Ohio · October 23, 2026

Ohio Widens Red-Dyed Diesel Use as Prices Stay Near Record

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Ohio just widened the use of red-dyed diesel on its highways through the end of the year. The trucking group OOIDA says not to expect much relief.

Red-dyed diesel is usually restricted to farming and other off-road uses because of its tax-free status, Land Line explains. Earlier this month, a federal order expanded its use. Now Ohio Gov. Mike DeWine has signed an executive order that allows broader use in the state.

What the order says

According to Land Line, DeWine's order directs the Secretary of the Treasury to "defer certain diesel fuel tax payment obligations and to provide penalty relief to the extent permitted by law and to direct the IRS to announce that it will not impose a penalty when dyed diesel fuel is sold for use or used on the highway during the period through Dec. 31, 2026."

The order centers on tax payment deferrals and penalty relief. Land Line notes that while it could give some truckers an immediate cost savings, there are other factors to weigh, including IFTA implications and which states a trucker operates in. IFTA, the International Fuel Tax Agreement, is how interstate carriers report and pay fuel taxes across states.

The OOIDA Foundation recently laid out its concerns about red-dyed diesel and tax holidays in an article titled "Cheaper at the pump, expensive later."

"OOIDA believes allowing the wider use of red-dyed diesel will provide minimal relief," said Todd Spencer, president and CEO of the Owner-Operator Independent Drivers Association. "Market stability is essential to bring down costs for the long haul."

Prices remain high

According to the U.S. Energy Information Administration's Oct. 19 report, the national average price of diesel was $6.276 a gallon. That is down from the record of $6.53 set on Sept. 21, but well above the $3.62 drivers paid a year ago. Land Line says the national average had never topped $5.816 before September 2026. In California, diesel averaged $8.242.

Other relief in the works

Land Line also reports that:

• The U.S. Department of Agriculture launched an $8 billion Harvest Fuel Relief Program of one-time payments to farmers.
• An FMCSA hours-of-service waiver for fuel haulers nationwide is in effect until Dec. 15.
• An Iowa harvest emergency order for ag haulers remains in effect through Nov. 7.

A question for readers

Would you run red-dyed diesel in Ohio before the end of the year, or is the IFTA paperwork not worth the savings?

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