Governor Wes Moore declares a state of emergency... Permission to use red duty-free oil in large trucks
Due to the US-Iran war, diesel prices soared by 76%... Approximately 72 cents per gallon tax exemption
Applies for a limited time for 30 days… Authorities are urged to pay attention to possible disadvantages when moving out of state
As oil prices soared in the aftermath of the war between the United States and Iran, the Maryland state government permitted the use of tax-exempt diesel (red-dyed diesel) on the road in order to ease the burden on local farms and the forestry industry.
Maryland Governor Wes Moore introduced tax-exempt red diesel (red-dyed diesel) for large trucks used for transporting livestock and lumber. announced that it had issued an emergency executive order allowing the use of diesel. This measure will remain in effect for 30 days from the date of issuance, and may be extended until December 31, if necessary.
'Red diesel' is chemically the same as regular diesel, but has red dye added for duty-free marking, and its use has been limited to 'off-road' such as agricultural machinery and construction equipment. With this executive order, farmers and lumber transporters will be exempted from paying taxes totaling 71.85 cents, including Maryland state tax (47.45 cents per gallon) and federal excise tax (24.40 cents per gallon).
Governor Moore said in a statement, "Agriculture and forestry are the foundation of Maryland's economy," and "For the first time, we have taken special action to support these key industries that are suffering due to rising national oil prices." explained. The state government is expected to lose up to $300,000 in tax revenue per month due to this measure, but has decided to take it to protect farmers.
According to the American Automobile Association (AAA), the price of diesel in Maryland has soared by about 76.2% over the past year, reaching $6.467 per gallon early this month. Farmers who suffered from reduced yields due to drought and abnormal cold waves this year are now facing a huge burden of fuel costs as the harvest season begins in earnest.
Related organizations such as the Maryland Farm Bureau have continued to demand prompt support from the state government, saying, "Diesel fuel is a necessity, not an option, in agriculture," and all expressed their welcome for this executive order.
Meanwhile, The Maryland Department of Agriculture urged caution when driving across state lines, saying that since this measure applies only within the borders of Maryland, transport vehicles traveling to neighboring states may be subject to punishment for violating the laws of that state.