Gov. Beshear Takes Step To Lower Diesel Prices for Farmers and Truckers

Step builds on the Governor's efforts since May to provide relief to Kentuckians amid rising costs due to ongoing war and federal policies

FRANKFORT, Ky. (Oct. 7, 2026) - On Wednesday, Gov. Andy Beshear announced that he has declared a state of emergency that will allow Kentucky farmers and truckers to use untaxed or dyed diesel fuel on public roadways to help provide relief from rising costs caused by the ongoing war in Iran. Pending sign-off from the state Attorney General, the order will go into effect tomorrow, Thursday, Oct. 8.

"The President's war of choice and unlawful tariffs have caused prices to skyrocket for hardworking Americans - including here in Kentucky - and I have taken urgent action to help families across the commonwealth, including farmers, by lowering gas and diesel prices, suspending the gas tax increase and more," said Gov. Beshear. "This has been a priority for me, and I am glad to see other leaders recognize that steps need to be taken to help hardworking families across our commonwealth and country."

The Governor's order comes after President Donald Trump signed an executive order that loosens federal restrictions and allows the use of tax-exempt, dyed diesel on roadways. Gov. Beshear's order will continue until the end of the war in Iran or the expiration of the President's executive order on Dec. 31, 2026, whichever is earliest.

Today's announcement builds on months-long efforts taken by Gov. Beshear to put more dollars back in the pockets of Kentuckians as federal policies cause prices to skyrocket at the pump, grocery and on day-to-day needs.

In May, the Governor signed an emergency regulation to freeze the gas tax at 26.4 cents per gallon ahead of an expected increase to 27 cents per gallon on July 1. The action to freeze the current rate is projected to save Kentuckians about $1.7 million combined each month.

Gov. Beshear also signed an executive order declaring a state of emergency related to gas prices. The order reduced the gas tax by 10 cents, resulting in a 10 cent per gallon price decrease for Kentuckians. The order was expected to save Kentuckians $26.8 million combined over a one-month period. In June, the Governor extended the order for communities where local leaders made the request.

To enforce the reduction and ensure providers didn't keep the 10 cents, Gov. Beshear also activated the state's price-gouging statute.

The Governor also sent two letters urging leadership in Congress and leaders in Kentucky's congressional delegation to suspend the federal gas tax until the end of the year.

In a proactive step, the Governor also signed an executive order to freeze the 2026 motor vehicle assessment rate ahead of an expected increase on Jan. 1, 2027.

These actions came just weeks ahead of a May 27, 2026, price decrease in Jefferson County and parts of Bullitt and Oldham counties after the Governor's request to the U.S. Environmental Protection Agency for the Louisville area to be removed from the federal Reformulated Gasoline Program received approval in February. For 30 years, Kentuckians living in these counties were paying 10 to 25 cents more per gallon.

To help farmers and small businesses, the Governor also sent a letter to Kentucky's congressional delegation calling for their support of the Homegrown Fertilizer Act, which would reduce fertilizer costs for farmers, reduce dependence on foreign fertilizer and provide grants and low-interest loans to expand production and storage capacity here in the United States.

Gov. Beshear also sent the President a letter in June to show his support in the suspension of the federal gas tax, and a letter in early September requesting the President rescind harmful tariffs and trade policies to lower prices for families.

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