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Illinois governor orders diesel price relief for farmers

Summarised from 2 outlets · 3 reports · Updated 8 Oct, 15:19 · Archive

Illinois Governor JB Pritzker has issued an executive order allowing farmers to use tax-exempt dyed diesel fuel on public roads through the end of the year.

Governor JB Pritzker has ordered the Illinois Department of Revenue and State Police to allow farmers to use dyed diesel fuel on state roads and highways without penalty through the end of the year. Dyed diesel is typically tax-exempt fuel used in heavy agricultural machinery like tractors. The executive order also declares all 102 Illinois counties disaster areas for 30 days, allowing the state to use additional resources to address rising fuel costs.

Diesel prices have surged significantly. The state averages around $6.66 per gallon, up from $3.73 a year earlier, representing a 67.8 per cent increase in the federal average cost over 12 months. Some areas have seen prices exceed $7.00 per gallon.

The Illinois Farm Bureau cautioned that while using dyed diesel could save farmers approximately $1.30 per gallon, the savings are not straightforward. Rodney Knittel, the Farm Bureau's Executive Director of Transportation, noted that about 80 cents of the $1.30 saving represents motor fuel tax being deferred rather than eliminated, meaning farmers will likely owe the difference in 2027. He also warned farmers need an 'exit strategy', as vehicles using dyed diesel must be flushed with regular highway fuel, requiring seven to eight loads and new filters.

Illinois governor orders diesel price relief for farmers
Image: WIFR

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In this story: JB Pritzker · Illinois · Illinois Farm Bureau · Rodney Knittel

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