Missouri Governor Allows Tax-Free Dyed Diesel on Public Highways

Governor Mike Kehoe signed Executive Order 26-20 on October 9, 2026, permitting all motor vehicles to use red-dyed diesel fuel on public highways for any purpose. This action expands a previous directive, Executive Order 26-19, which had restricted the use of tax-free fuel to farmers and commercial vehicles licensed for farm use. The new order also extends temporary increases in allowable weight limitations for agricultural transport.

Red-dyed diesel is typically reserved for off-road agricultural use and sold without a motor-fuels tax, making its use on highways illegal under state law. Kehoe stated the order aligns state enforcement with a federal executive order issued by President Donald Trump to provide economic relief following record diesel prices, which hit $6.53 per gallon on September 22.

Kehoe noted that the measure allows haulers in Missouri to utilize tax-free fuel on any road in the state, which he claims will reduce everyday expenses for families, businesses, and consumers by lowering transportation costs across the supply chain. The suspension of state restrictions and associated penalties is scheduled to expire on December 31, 2026.