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BISMARCK - Gov. Kelly Armstrong on Tuesday, Sept. 29, declared a state of emergency in North Dakota for conditions affecting the supply and availability of diesel fuel. He took action to provide temporary relief for farmers by expanding the permitted uses of red-dyed diesel fuel to allow for on-highway use.
Under North Dakota law, the state charges an excise tax of 23 cents per gallon on regular diesel fuel but only 4 cents per gallon on red-dyed diesel, which is authorized to be used only for certain off-highway agricultural, industrial and railroad purposes.
An executive order issued by Armstrong temporarily expands the use of dyed diesel fuel to licensed motor vehicles used in connection with ag operations. This allows farmers to use the cheaper diesel not only for field work in their tractors and harvesting equipment but also for on-highway uses such as hauling grain, livestock, feed, seed, fertilizer, equipment and other ag inputs and products, as well as for storing and processing ag products.
"Record high diesel prices are squeezing our ag producers, and this is a meaningful and timely step we can take to provide temporary relief and help our farmers and ranchers through the harvest season," Armstrong said.
"Farmers burn more diesel during harvest than at any other time of year, and saving 19 cents per gallon can make a meaningful difference when margins are razor thin. This translates into lower transportation costs to suppliers and processors, which hopefully will be passed on to the consumer," Agriculture Commissioner Doug Goehring said.
The order will remain in effect through Nov. 30. It does not affect the federal government's 24.4-cent-per-gallon excise tax on diesel fuel.