Virginia Governor Abigail Spanberger issued Executive Directive 5 on October 16, authorizing temporary use of dyed diesel fuel in on-road vehicles to help farmers, loggers, haulers and other essential industries cope with elevated diesel prices caused by global supply disruptions.
The directive instructs the Department of Motor Vehicles to waive penalties for on-road use of dyed diesel and publish within five business days the process for remitting state diesel taxes on such fuel.
The Governor said: "Virginia's farmers, loggers, and haulers are facing record-high diesel prices due to global market and trade disruptions beyond their control. These rising costs are hurting small businesses and families that are already struggling to keep up with grocery prices."
Virginia Farm Bureau President Scott Sink said the authorization will provide relief during harvest season and when transporting livestock. Virginia Loggers Association President Frank Myers called the directive "meaningful short-term help" for loggers facing economic challenges.
Secretary of Agriculture and Forestry Katie Frazier said rising diesel fuel prices compound challenges from trade disruptions and weather impacts. The directive helps maintain food and supply chains to benefit farmers, loggers, foresters and all Virginians, she said.
The directive takes effect October 16, 2026, and remains in effect through December 31, 2026, unless extended or rescinded. The Secretary of Transportation will monitor its effectiveness and provide recommendations to the Governor.
Businesses using dyed diesel are advised to maintain detailed fuel purchase records and consult with federal authorities regarding federal tax implications.