Arkansas Governor Sarah Huckabee Sanders has declared a statewide emergency in response to soaring diesel prices that officials say are straining the state’s agriculture and forestry industries. The order, effective September 30 through October 30, temporarily suspends certain penalties tied to the use of dyed diesel fuel in highway vehicles.
State officials note that diesel prices have climbed to more than double the assumptions used in the University of Arkansas Cooperative Extension Service’s 2026 crop budgets. With distillate inventories running 13% below the five‑year average and global production lagging, the administration says farmers and timber operators are facing immediate fuel shortages during peak harvest and hauling season.
The order suspends penalties under Ark. Code Ann. §§ 26‑56‑226 and 26‑56‑227 for eligible agricultural and forestry vehicles—specifically Class 2 through Class 8 trucks registered in Arkansas and used primarily for farm or timber operations. This allows producers to temporarily use dyed off‑road diesel in highway vehicles without facing the usual $10‑per‑gallon penalty.
The Department of Finance and Administration has been directed to seek federal penalty relief from the IRS, and all state agencies are ordered to support emergency measures. The declaration cites agriculture’s $25.6 billion annual impact and Arkansas’ year‑round forestry economy as key factors in the decision.
The emergency order remains in effect through October 30 unless extended.
