Ohio suspends dyed-diesel highway penalties through end of year

Ohio will not enforce dyed-diesel restrictions on public highways through the end of the year, under an executive order Gov. Mike DeWine issued Oct. 21 that waives penalties for running red-dyed off-road diesel in on-road vehicles.

The move aligns Ohio with federal guidance that temporarily suspends penalties for highway use of dyed diesel. It targets one pressure point directly: fuel-cost relief for Ohio's farmers and freight operators in the middle of harvest.

There's a number behind the order. National on-highway diesel averaged $6.276 per gallon as of Oct.19, up nearly 10 cents from a week earlier, according to the U.S. Energy Information Administration. Prices peaked at $6.53 per gallon nationwide during the week of Sept. 21 — a surge driven by disruptions in global fuel supplies tied to the U.S.-Iran conflict and Russia's war in Ukraine.

What does the order actually change?

Normally, the rules are straightforward. Highway, or "on-road," diesel carries federal and state fuel taxes. Off-road diesel — the red-dyed fuel used in agriculture, construction and forestry equipment — generally does not, because enforcement agencies use the dye to catch tax avoidance on public roads, with penalties and back taxes for violators.

Farmers typically buy off-road diesel in bulk and store it in tanks on the farm. Under the suspension, they can legally run that dyed fuel in trucks and other on-road machinery without penalty through Dec. 31.

The order also interacts with relief already in place. Ohio's fuel-tax holiday runs through Jan. 2, giving daily drivers a break at the pump. Because that holiday is already in effect, the executive order states the state does not need to defer Ohio fuel-tax liability on dyed diesel purchased during the period — the tax question is effectively moot for covered purchases.

Why farm groups pushed for it

The Ohio Soybean Association had called on the governor for more action on fuel relief before the order came. In an Oct. 22 statement, the group said the exception will ease financial pressure on farm families during the critical harvest season.

"We appreciate Gov. DeWine recognizing the challenges Ohio farmers are facing and taking action to provide a bit of relief during this crucial time of year," said association president Bennett Musselman, a Pickaway County soybean farmer. "We originally raised this issue because farmers are having to change their normal harvest routines due to high fuel costs. This decision could not have come at a better time."

That detail matters. High diesel prices weren't just squeezing margins — they were altering how farmers scheduled and ran their harvest operations, forcing routine changes during the most fuel-intensive weeks of the year.

The Ohio Farm Bureau backed the measure too, calling it much-needed flexibility for farmers and partners across the agricultural supply chain to manage transportation costs at the busiest time of year.

"Fuel is one of many expenses farmers have little control over, and rising costs continue to cut into already tight farm margins," said Ohio Farm Bureau President Bill Patterson. "This relief comes at a critical time for agriculture, and we appreciate our leaders listening to our farm families and providing short-term relief."

What farmers should watch next

The suspension is explicitly short-term. Enforcement waivers and penalty relief run only through the end of the year, and the fuel-tax holiday expires Jan. 2. After that, standard dyed-diesel rules and fuel-tax liability resume in Ohio.

Federal diesel relief is moving in parallel: the USDA has announced an $8 billion diesel relief payment program, giving farmers a separate channel of support beyond the enforcement suspension. Ohio farmers weighing fuel purchases should track both calendars — the Dec. 31 enforcement cutoff and the Jan. 2 tax-holiday expiry — before planning bulk dyed-diesel use for on-road equipment into January.