FOLLOW US

America October 1, 2026 5 mins read

Diesel Crisis: Louisiana Relief Meets New Export Threats

America ı By Michallie Harrison

1 Comment

A person opens a diesel fuel cap in this April 2020 file photo.

Louisiana’s diesel crisis has entered October with emergency relief still in place and fuel prices well above last year’s levels. Meanwhile, Alabama’s average remains above $6 a gallon as Washington escalates pressure on Europe to release emergency supplies.

Although pump prices have eased in both states, new international developments threaten to complicate the recovery. Reuters reported Thursday that the Trump administration warned France and Germany to release diesel reserves or face a potential U.S. export ban. The report cited three people familiar with the discussions.

Separately, Chinese refiners have suspended fuel exports beyond Hong Kong and Macau until further notice, Reuters reported, citing four sources. Analysts warned that the decision removes a source of supply from an already strained market.

For farmers and truckers across Louisiana and Alabama, those developments arrive during harvest season, when fuel costs directly affect the expense of bringing crops to market.

Diesel prices ease but remain far above last year

Louisiana’s average diesel price stood at $5.8977 per gallon Thursday, according to AAA’s state price tracker. That was down about 2 cents from Wednesday and roughly 14 cents below the September 21 record.

However, the price remained approximately 77% above the $3.3231 average recorded a year earlier. At those averages, buying 100 gallons costs about $257 more than it did last October.

Across the state line, Alabama’s diesel average fell to $6.0312. That was approximately 13 cents below its September 20 record, but still about 75% above the year-earlier average of $3.4555.

What Louisiana’s emergency relief covers

Louisiana Gov. Jeff Landry announced emergency action September 23 to help farmers and timber harvesters use dyed diesel they already keep on hand.

Dyed diesel carries a red marker identifying fuel intended for qualifying off-road uses, such as tractors and logging equipment. Louisiana’s action suspends state penalties for its highway use in vehicles registered as Class 2, for forest products, or Class 5, for farm use. The relief runs through October 22.

However, eligibility comes with a tax requirement.

The Louisiana Department of Revenue’s September 24 bulletin says operators qualify for the penalty waiver only if they or their fuel seller pay the state’s 20-cent-per-gallon excise tax. The bulletin also covers sellers supplying eligible vehicles amid the diesel crisis.

Landry separately directed state officials to request federal penalty relief from the IRS. The state announcement does not itself establish a federal waiver.

Alabama suspends dyed-diesel enforcement

Alabama has adopted a similar response to rising costs.

On September 24, Gov. Kay Ivey directed the Alabama Law Enforcement Agency to halt dyed-diesel enforcement for 120 days to help agricultural and timber businesses. She also instructed the state’s revenue commissioner to seek IRS penalty relief.

The governor’s announcement cited sharply higher fuel prices. It did not identify stations that had exhausted their diesel supplies.

Local supply concerns and rising harvest costs

In Louisiana, local reporting has documented more limited supply concerns.

KSLA reported September 24, citing unnamed sources, that some local businesses had completely run out of diesel. However, the report did not identify those businesses or establish the duration or geographic extent of the outages.

That leaves an important distinction between reported local disruptions and evidence of widespread empty pumps. The station’s report does not establish that those businesses remain without fuel today.

The financial impact is more clearly documented.

“It’s cutting our profits in half on a lot of stuff,” Thornton Logistics owner Chris Thornton told KSLA.

Additionally, LSU AgCenter associate extension agent Joshua Salley told the station that hay producers in DeSoto Parish had increased prices to offset higher fuel expenses.

Alabama farmers are confronting similar pressure on budgets prepared months before diesel reached its recent highs.

An Alabama Cooperative Extension report put farm-use diesel at $5.42 per gallon for the week ending September 18. That was almost double the $2.73 average in January and February, when many growers were developing their production budgets.

Meanwhile, Auburn University researchers estimated that higher diesel prices would add approximately $247 million to harvest costs for corn, cotton, peanuts and soybeans across 13 Southern states. The estimate excluded fuel used to transport harvested crops to their first buyers, leaving additional expenses outside the calculation.

Trump weighs an export ban amid diesel crisis

Washington’s response now carries potential consequences beyond U.S. borders.

According to Reuters’ October 1 report, one source said the administration wants the European Union to release 120 million barrels of diesel over six months. The European Commission said its energy taskforce would discuss the situation Friday morning.

President Donald Trump said Wednesday that he discusses a possible diesel export ban daily. He acknowledged that restricting exports could negatively affect gasoline prices, while suggesting it could lower diesel costs.

Reuters reported that the administration has also considered voluntary export limits and broader sales of tax-exempt diesel. Those options remained under consideration in that report.

Landry has pushed for a 90-day export pause to increase domestic availability during harvest. However, Louisiana’s oil and gas industry has challenged that approach.

Tommy Faucheux, president of the Louisiana Mid-Continent Oil and Gas Association, warned that transportation constraints could prevent exported fuel from reaching additional U.S. buyers. If refiners run out of storage, he argued, they could reduce production and cut gasoline output as well.

Global supply shifts complicate the diesel crisis

The international picture also includes signs of recovery alongside new restrictions.

USA Herald previously reported on the Saudi pipeline shutdown and its potential to deepen the fuel crisis. Reuters reported Thursday that Saudi Arabia had resumed tanker loadings at Yanbu after restarting the East-West Pipeline. Nevertheless, attacks linked to the Middle East and Ukraine wars have reduced refining capacity and tightened global fuel supplies.

Russia, meanwhile, extended its diesel export restrictions through the end of October, with exceptions for supplies covered by certain intergovernmental agreements.

For Louisiana’s eligible farm and forestry operators, the immediate relief deadline remains October 22. Their state excise tax obligation also remains in place, while broader decisions over exports and emergency reserves could influence fuel costs through the rest of harvest.

 

Previous Article

Newsom Signs AI Laws Barring California Bosses and Lawyers From Handing the Job to Machines

Read More
100 Posts

Michallie Harrison

Michallie K. Harrison is a journalist, communications professional, and retired U.S. Army Sergeant First Class with 21 years of service. She writes about politics, public policy, law, technology, national security, and the issues driving public conversation.

Discussion

CJ
Cohen Jared 3 weeks Ago

Would an export pause actually get more diesel to farmers if transport and storage are already bottlenecks?

Don’t Miss It
America October 21, 2026 Spartanburg Woman $8K Insurance Fraud Case Leads to Arrest By – Rachel Moore
America October 21, 2026 Musk and Trump Have a Starlink Problem They Can’t Spin Away By – Michallie Harrison
America October 21, 2026 Texas Trans Texts Spark Election Propaganda Allegations By – Michallie Harrison
America October 20, 2026
Ara Partners $2.5B Energy Fund Reaches…

Ara Partners has secured $2.5 billion in capital commitments for…

By – Tyler Brooks
America October 20, 2026
DXC Sell Insurance Software Division in…

DXC Technology is in advanced discussions to sell its insurance…

By – Tyler Brooks
America October 20, 2026
Burger King Hello Kitty Meal Arrives…

Few pairings feel as inevitable as a kids’ meal and…

By – Rachel Moore
America October 20, 2026
Kyle Kennedy Death at 42 Mourned…

Some people inherit a famous name. Fewer spend it on…

By – Rachel Moore
America October 20, 2026
Christina Applegate Misdiagnosed: Five Years Treating…

Most people would celebrate hearing they don’t have a chronic…

By – Rachel Moore
America October 20, 2026
Prudential’s $4B Brazil Mexico Sale Hands…

Big companies sometimes grow by letting go, the way a…

By – Rachel Moore
America October 20, 2026
CBRE £760M Onnec Buy Targets Booming…

Real estate services giant CBRE Group Inc. has agreed to…

By – Rachel Moore
America October 20, 2026
California Ballots: DOJ Cites Charges Against…

WASHINGTON — The Justice Department is citing charges against 28…

By – Michallie Harrison
America October 20, 2026
Richard Riehle Dies at 78, Leaving…

Richard Riehle, the character actor whose memorable roles included “Office…

By – Michallie Harrison
America October 20, 2026
Extreme Heat Is Spreading and Lasting…

An extreme heat event lasting 367 days touched nearly 85%…

By – Michallie Harrison
America October 19, 2026
Information Ecosystem: Five Tools to Detect…

The information ecosystem is increasingly vulnerable to misinformation. There are…

By – Jackie Allen
America October 19, 2026
Kohen Wiley Is Dead. Mississippi Owes…

Kohen Wiley was 1 year old when police gunfire killed…

By – Michallie Harrison
America October 19, 2026
AP Fact Check Examines Online Claims…

AP Fact Check reviews disputed claims, examines evidence and helps…

By – Jackie Allen
America October 19, 2026
Skywatchers: Meteor Season Brings Orionid and Taurid…

The Autumn Meteor Season is underway,. Skywatchers will have two…

By – Jackie Allen
America October 19, 2026
Patriot Missiles Delayed Despite Payment, Zelenskyy…

WASHINGTON — The United States is delaying deliveries of Patriot…

By – Michallie Harrison
America October 19, 2026
Trump’s Russia Policy: Cornyn Shares Investigation…

WASHINGTON — Republican Sen. John Cornyn has amplified a call…

By – Michallie Harrison
America October 19, 2026
Human Genome Project Legacy Advances Research…

The Human Genome Project transformed scientists’ understanding of human DNA.…

By – Jackie Allen
America October 19, 2026
An Airman Died After a Pregame…

By Michallie K. Harrison | Opinion Tech. Sgt. Ian Patterson’s…

By – Michallie Harrison
America October 18, 2026
Hunter’s Moon Illuminates October Skies

The Hunter’s Moon will light up the autumn sky in…

By – Jackie Allen
America October 18, 2026
Alleged Chinese Agent Has Ties to…

A Federal investigation into California realtor Wanying “Heather” Zhang reveals…

By – Jackie Allen
America October 18, 2026
Protests in Paris: Macron to Address…

PARIS, France — October 18, 2026 — Protests in Paris…

By – Jackie Allen
America October 17, 2026
KJ Biermann Faces  Felony Charges as…

ATLANTA — KJ Biermann, the 15-year-old son of reality television…

By – Jackie Allen
America October 17, 2026
America in 2035: A Nation Unraveled…

By Michallie K. Harrison | Opinion The future I warned…

By – Michallie Harrison
America October 17, 2026
School Shooter Killed After Father Crawls…

A father whose two daughters attended Silver Rail Elementary School…

By – Jackie Allen
America October 16, 2026
HealthSplash VP 18 Months Sentencing Rewards…

Cooperation can shave years off a prison term, but it…

By – Tyler Brooks
America October 16, 2026
Daylight Saving Time Returns Nov. 1…

Americans will turn their clocks back one hour on Nov.…

By – Jackie Allen
America October 16, 2026
California Identifies New York Life, Aetna,…

Key Takeaways   California’s Department of Insurance maintains an official…

By – Samuel Lopez
America October 16, 2026
Three Children, Teacher Killed in Oregon…

BEND, Ore. — An Oregon school shooting killed three children…

By – Michallie Harrison
America October 15, 2026
Trump Scraps Hegseth’s Execution Livestream After…

WASHINGTON — President Donald Trump canceled the planned execution livestream…

By – Michallie Harrison
America October 13, 2026
Pope Leo XIV’s Surgery Exposes Gap…

By Samuel López | USA Herald VATICAN CITY — As…

By – Samuel Lopez
America October 16, 2026
NFL Player $300M Hip Surgery Lawsuit…

Athletes bet their bodies on surgeons the way pilots bet…

By – Tyler Brooks
America October 16, 2026
Russian Drone Strikes Hit American Businesses…

Russian drone strikes against American-linked businesses in Ukraine are raising…

By – Jackie Allen
America October 11, 2026
AP Poll Top 25: Georgia Claims…

Georgia has reclaimed the top spot in the AP Poll…

By – Rachel Moore
America October 10, 2026
A.J. Armstrong: Former NFL Player’s Son…

 HOUSTON — Antonio “A.J.” Armstrong Jr., the son of former…

By – Jackie Allen
America October 9, 2026
NFL Pro Tyreek Hill Takes the…

What the Jury Is Hearing Lakeeta “Keeta” Vaccaro Hill testified…

By – Samuel Lopez
America October 9, 2026
Terrell Owens Sued By Nolan Wells’…

What Readers Need to Know Three young men who were…

By – Samuel Lopez

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter