Stein lifts dyed-diesel penalty for harvest season
The state will not penalize highway use of untaxed red dye diesel through the end of 2026, after diesel prices hit record highs in September.
Gov. Josh Stein on Wednesday, Sept. 30, directed state Revenue Secretary McKinley Wooten to provide penalty relief from the prohibition on highway use of red dye diesel fuel through the end of 2026. The governor also wrote to the Internal Revenue Service asking for federal penalty relief for use of the same fuel.
Many of the state's farmers keep stores of non-taxed dyed diesel on hand for off-road use, according to the governor's office. Suspending enforcement lets them use that fuel on the road during harvest, which the release calls the most fuel-intensive period of farm production. "North Carolina farmers have been feeling the squeeze of tariffs, drought conditions, crop loss, and skyrocketing diesel prices," Stein said.
"Diesel expenses have been the number-one concern I've heard from farmers in what has already been a challenging year," said Shawn Harding, president of the North Carolina Farm Bureau. Harding said the governor acted less than a day after receiving a letter from the Farm Bureau and the agricultural community asking for help.
According to the governor's office, diesel reached record highs throughout September, with the price per gallon reaching $6.25 in North Carolina, and domestic diesel inventories fell to 107.9 million barrels, the lowest point in recorded history, according to the U.S. Energy Information Administration. The release notes that agriculture is the state's biggest industry, employing one of every five North Carolinians and generating $117 billion in annual economic activity.
Prices have eased slightly since. As of Sunday, Oct. 4, North Carolina diesel averaged $6.024 a gallon, down 13 cents from $6.156 a week earlier, according to AAA; regular gasoline averaged $4.026, also down 13 cents on the week. The U.S. Energy Information Administration put Lower Atlantic diesel at $5.953 a gallon in the week of Sept. 28, down 19 cents.
NC Newsline reports that state legislative leaders have called for a special session on high gas and diesel prices.
- N.C. Office of the Governor, “Governor Stein Takes Action to Lower Costs for Farmers and North Carolina Families by Halting the Prohibition of Dyed Diesel Fuel on Highways”, Wednesday, September 30, 2026
- AAA, “Gas prices: North Carolina averages”
- U.S. Energy Information Administration, “Weekly retail gasoline and diesel prices”
- NC Newsline, “NC legislative leaders call for special session on high gas, diesel prices”, Saturday, October 3, 2026



Under One Roof · News - Stories - Weather - Sports · Covering All of Eastern North Carolina