Amid rising fuel costs, Gov. Josh Stein today directed N.C. Department of Revenue Secretary McKinley Wooten to provide penalty relief from prohibition on the highway use of red dye diesel fuel through the end of 2026. Stein also wrote to the Internal Revenue Service requesting federal penalty relief for the use of the same fuel. Because many of North Carolina’s agricultural producers have stores of non-taxed dyed diesel fuel on hand for off-road use, suspending enforcement of this penalty will lessen financial pressure on farmers by allowing on-road use during this year’s harvest, which is the most fuel-intensive period of agricultural production.
In a press release issued Thursday, Stein said “North Carolina farmers have been feeling the squeeze of tariffs, drought conditions, crop loss, and skyrocketing diesel prices. And our families are struggling with the cost of groceries. Today I am working to ease the burden on farmers during their most fuel-intensive time of year and reduce the upward pressure on the cost of food. I urge the federal government to join me in providing the same relief to North Carolina farmers and families.”
Revenue Secretary Wooten said, “The North Carolina Department of Revenue is committed to implementing the Governor’s directive and will continue to be responsive to the critical needs of North Carolina taxpayers.”
North Carolina Farm Bureau President Shawn Harding said Stein’s action is greatly appreciated, saying it provides farmers “timely and meaningful relief as they face record-high diesel prices at harvest time.”
Harding said farmer report diesel expenses as their main concern during what has already proven to be a challenging year. Stein’s action, he said, comes less than a day after Farm Bureau and the state’s agricultural community sent a letter to the governor to ask for help.
“…we are truly grateful for these effective and practical measures toward protecting and preserving North Carolina’s farm businesses,” Harding said.
Throughout September, diesel prices have reached record highs, with the price per gallon reaching $6.25 in North Carolina. Domestic inventories of diesel reached the lowest point in recorded history this month, with 107.9 million barrels on hand, according to the US Energy Information Administration. These high prices present significant hardship for North Carolina farmers as they begin conducting the harvesting operations that are critical to ensuring North Carolina’s farm goods reach markets abroad and our own tables here at home. Agriculture is North Carolina’s biggest industry, employing one out of every five North Carolinians and generating $117 billion in annual economic activity.
Click here to read Governor Stein’s letter to the Internal Revenue Service.
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