The Shadow
RICHMOND, VA — Governor Abigail Spanberger today issued Executive Directive 5 authorizing the temporary use of dyed diesel fuel in on-road vehicles to provide relief for farmers and families amid rising fuel costs. The Governor’s action directs the Department of Motor Vehicles to use its authority to waive penalties for the use of dyed diesel on roadways and help Virginians take advantage of the new directive.
“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,” said Governor Abigail Spanberger. “Today, I am taking action to reduce the strain on Virginians by making sure that dyed diesel is available for on-road use to keep equipment running, food and goods moving, and small businesses operating. My goal is simple: support the hardworking men and women who feed, fuel, and supply our Commonwealth and all who call it home.”
Within five business days of the Governor’s directive, the Virginia Department of Motor Vehicles shall publish the process to remit state-owed diesel tax for utilization of dyed diesel on Virginia roadways. The action comes as farmers, loggers, and other essential industries face extraordinary circumstances that threaten the movement of food, feed, harvest equipment, timber, and other goods and critical materials.
“We thank the Spanberger Administration for recognizing the impact diesel prices have on farms across the Commonwealth,” said Virginia Farm Bureau President Scott Sink. “Allowing dyed diesel to be used on-road will bring some relief for farmers who feel the impact of every cent per gallon when hauling crops this harvest season or trucking cattle to market. We appreciate the Administration listening to farmers and responding.”
“The Virginia Loggers Association appreciates Governor Spanberger’s Executive Directive providing flexibility for the use of dyed diesel for on-road use,” said Virginia Loggers Association President Frank Myers. “The directive offers meaningful short‑term help for Virginia loggers. We look forward to continued collaboration on long-term solutions and stability as we work to navigate economic challenges facing our industry.”
“Agriculture and forestry are facing a difficult year due to global trade disruptions, increased input costs, and weather impacts. Rising diesel fuel prices compound that burden in significant ways,” said Secretary of Agriculture and Forestry Katie Frazier. “This Executive Directive increases access to fuel and helps address costs, keeping our food and supply chains moving to the benefit of our farmers, loggers, foresters, and all Virginians.”
“Small businesses and family farms are struggling with increased costs, at no fault of their own and largely due to market decisions beyond their control,” said House Agriculture, Chesapeake, and Natural Resources Chair Delegate Alfonso Lopez. “The Governor’s action today will help lower fuel costs for the men and women who move food and goods throughout our economy.”
“With no immediate end in sight to the increasing cost of diesel fuel, we must take action to provide relief to those who rely on it to do business and transport goods,” said Senate Agriculture, Chesapeake, and Natural Resources Chair Senator Dave Marsden. “Today’s action is a step to address this issue and make a difference for businesses and Virginians.”
The Executive Directive is effective on October 16, 2026, and remains in effect until December 31, 2026, unless extended or rescinded. Affected businesses are encouraged to maintain detailed fuel purchase records and documentation demonstrating eligibility under the emergency authorization and consult with IRS and financial advisors regarding federal tax liability.
The Secretary of Transportation, in consultation with the Secretary of Agriculture and Forestry, will monitor the effectiveness of the relief measures and provide recommendations to the Governor regarding their continuation, modification, or termination. Users of dyed diesel are advised to consult the commensurate federal executive action and IRS guidance on federal tax implications of using dyed diesel on-road.
Click here to read the full text of Governor Spanberger’s Executive Directive 5.
