Diesel Prices Soar: When Will Relief Arrive for Truckers?

Several states are taking steps to reduce fuel-related costs for motorists and commercial operators as diesel prices remain elevated, but the relief varies by state and does not always include heavy-duty truck fuel. Measures in Georgia, Texas and Ohio include tax changes, temporary fuel-use permissions and proposed diesel-tax suspensions.

Georgia fuel tax holiday excludes diesel users

Georgia officials say motor carriers operating under the International Fuel Tax Agreement, or IFTA, will not owe fuel tax on miles traveled in Georgia during the state’s fuel tax holiday.

The state reduced its gasoline tax by 15% beginning July 1, with the reduction scheduled to continue through the end of the year. However, the holiday does not apply to diesel fuel used by truckers and other commercial diesel operators.

Officials also said qualifying fuel purchased in Georgia during the holiday will not be included in the IFTA quarterly tax calculation. IFTA requires interstate carriers to report fuel purchases and miles traveled across participating jurisdictions.

Texas expands temporary diesel and weight provisions

Texas farmers and truckers may use dyed diesel on public roads under a gubernatorial proclamation that temporarily suspends state restrictions and associated penalties. Dyed diesel is chemically similar to regular diesel but is generally untaxed and ordinarily prohibited for use on public roadways.

The proclamation does not waive the underlying fuel tax. It also raises the allowable gross weight for trucks hauling fuel, agricultural products or timber to 95,000 pounds. The action additionally seeks federal flexibility related to certain clean-diesel requirements.

Patrick De Haan, head of petroleum analysis at GasBuddy, said allowing truckers to use dyed diesel would not resolve the supply imbalances contributing to higher on-road diesel prices. Farmers already use the fuel in permitted applications, he noted, meaning the change could reduce tax costs without increasing the overall diesel supply.

Ohio considers temporary suspension

Mike DeWine’s office said the governor plans to sign legislation suspending Ohio’s 38.5-cent-per-gallon gasoline tax and 47-cent-per-gallon diesel tax through the remainder of the year.

The proposed suspension would provide direct relief to commercial diesel users if enacted. The measure is separate from proposals at the federal level to suspend or reduce fuel taxes.

Fuel costs continue to pressure small carriers

AAA’s national average for diesel reached $5.98 per gallon during the period covered, increasing pressure on trucking companies, owner-operators and small delivery fleets. The Missouri Trucking Association said small-business carriers have been particularly affected by the increase.

Some carriers can recover higher fuel costs through surcharges, while others remain bound by existing contracts with capped or limited fuel adjustments. Larger fleets commonly use fuel surcharges tied to weekly or regional diesel averages. Smaller carriers frequently compete for spot-market freight through brokers, where rates may not adjust quickly enough to offset rising fuel expenses.

Industry representatives say higher fuel expenses reduce the money available for truck payments, insurance, maintenance and other operating costs. Although some contractors have received additional work or limited rate adjustments to help offset the increase, those measures do not fully address the higher cost of diesel.