SWEETWATER COUNTY — Five of Wyoming’s neighbors have eased enforcement of dyed diesel rules, but Wyoming has not and says it can’t without the legislature getting involved.
The Wyoming Department of Transportation said the Oct. 5 Emergency Tax Relief on Diesel Fuel executive order does not supersede Wyoming statute 39-17-208, which prohibits driving with dyed diesel on public roadways.
Red-dyed diesel is diesel exempt from highway fuel taxes, meant to be used on farms or other off-road uses. The dye in the diesel serves as a marker indicating the highway tax has not been paid and fines up to $500 or $5 per gallon can be invoked if someone is caught driving with dyed diesel while on public roads. Federal diesel tax is 24.4 cents per gallon, and Wyoming’s tax is 23 cents per gallon.
President Donald Trump’s Oct. 5 Executive Order directs the U.S. Treasury Secretary to defer certain federal diesel excise tax payments until Dec. 31, 2026, with the intention to provide relief during surging fuel prices.
Doug McGee with WYDOT public affairs told SweetwaterNOW the department’s reading of the order is that federal taxes were deferred, not eliminated. McGee said that reading could be wrong, and that WYDOT has not received further guidance from the Department of the Treasury or the IRS. He said that guidance is expected to bring more clarity, and that until it arrives, questions remain.
The order focuses on federal tax collection, not state. According to a WYDOT press release, diesel taxes in Wyoming are set by the legislature, and neither the governor nor WYDOT can waive penalties for dyed diesel used in non-tax-exempt ways.
“State relief in addition to President Trump’s Oct. 5 EO would require changes by the incoming legislature,” WYDOT said.
McGee said the department does not make recommendations to lawmakers on fuel taxes and counts on legislators to know what is best for their constituents. He said federal fuel tax revenue goes into the Highway Trust Fund, which supports the federal transportation bill.
Neighboring States
Five of Wyoming’s six neighbors have taken additional action on dyed diesel. Nebraska allows vehicles transporting agricultural products to use dyed diesel without state penalties for 90 days, while South Dakota, Colorado and Idaho have paused or limited inspections and enforcement. Montana suspended enforcement for commercial agriculture and timber vehicles through Nov. 23. Utah had not announced changes according to the Deseret News.
Gov. Mark Gordon has signed Executive Order 2026-09, temporarily easing height and weight restrictions on transporting agricultural products, and Executive Order 2026-10, waiving certain hours-of-service restrictions for fuel haulers. Neither addresses dyed diesel.
Idaho’s order specifically says it does not exempt anyone from the laws of other states, which matters for truckers headed into Wyoming.
WYDOT said Wyoming law enforcement is aware of the inconsistencies between states. McGee referred questions about traffic stops and enforcement to the Wyoming Highway Patrol, which has not responded as of the publication of this post.
