Governor Whitmer Waives Diesel State Taxes in Michigan Amid Energy Crisis

Governor Whitmer has declared a state of emergency as gas and energy prices continue to skyrocket. This new waiver on state taxes for diesel should offer some relief to those hit hardest by rising costs and tight margins-- Michigan farmers-- and will provide some relief, albeit temporary.

Understanding the Diesel State Tax Waiver During Michigan's Crisis

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On Monday, October 12, Governor Gretchen Whitmer signed an executive order to temporarily suspend state taxes on "dyed diesel fuel" effective immediately.

This waiver only applies to diesel fuel, and while it can be terminated at any point by Whitmer, as it's written, this order will remain effective through the end of the year and expire December 31, 2026.

Michigan’s farmers and loggers face unprecedented financial strain from record-high diesel prices, tight margins, and significant market volatility – costs that sometimes pass to consumers... granting eligible highway-licensed vehicles temporary access to this fuel would provide immediate relief. -- EXECUTIVE ORDER No. 2026-15

While we can't say this is an unprecedented move, it couldn't have come at a better time. According to OilGasPrices.com, the average price of diesel in the U.S. is $6.28/gallon; here in Michigan it's slightly higher at $6.49/gallon.

In her executive order, Governor Whitmer cites the Iran War as the catalyst for disruption in global oil markets,

as a result Michiganders have faced the highest increase in year-over-year average gas prices in the United States.

As cold weather returns to Michigan and with winter fast approaching, I can't help but wonder what this will do to our heating bill this year; it definitely won't be pretty.