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Mississippi leaders to implement some fuel relief in repsonse to Trump executive order

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A Walmart supply truck drives along Interstate 55 in Jackson, Miss., Wednesday, Oct. 20, 2021.
(AP Photo/Rogelio V. Solis)

To mitigate rising fuel prices, President Donald Trump signed an executive order on Monday deferring federal taxes on dyed diesel and allowing it to be used on the highway. Governor Tate Reeves, on Facebook, said the state is taking cues from that order in responding to high fuel prices. 

Elise Catrion Gregg

Mississippi to implement some fuel relief in repsonse to Trump executive order

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"Because of the EO signed by President Donald J. Trump, I have spoken with Commissioner Sean Tindell and he plans to  direct the Commercial Transportation Enforcement Division of the Mississippi Department of Public Safety to not enforce the dyed diesel prohibition on highways," Reeves wrote in a social media post. 

That dyed diesel is normally reserved for off-road vehicles and equipment, with heavy effects on industries like farming and logging.

Recently, governors of multiple states, including Alabama and Louisiana, have issued their own executive orders, similar to what Trump's now doing. Reeves still hasn't issued an executive order. 

"What we're trying to do is be cognizant of what the president's desires are and follow his lead when it comes to the use of the red-dyed fuel in diesel vehicles," said Public Safety Commissioner Sean Tindell in an interview. "We haven't issued — don't know if the governor intends to issue —an executive order, but we do intend to comply with the intent of the president." 

Tindell said they expect to maintain that policy for at least the next two to three months, although that timeline is subject to change. Although Reeves said they weren't enforcing the prohibition, Tindell emphasized that it was a shift in priorities. 

"We're directing our officers to focus their attention on those types of safety concerns that we think will make our roadway safer and not be so much concerned with the color of the fuel and the diesel tanks at this time," Tindell said. "We're doing that in the furtherance of President Trump's executive order, and we're going to focus our attention on the weights and the safe operation of these commercial vehicles on our place." 

Agriculture and Commerce Commissioner Andy Gipson had previously called for the state to implement relief measures, including a break on gas taxes. He praised Trump and Reeves for their actions this week, but said more could be done. 

"First, we need to make sure that we have ample supply of red dye nationwide to get through this temporary crisis," Gipson wrote in a statement. "Secondly, those buying gasoline or on-road diesel for their vehicles are still paying nearly 25 cents per gallon for state fuel taxes. Most of our neighboring states have suspended state fuel taxes for gasoline and undyed diesel. Mississippi can do the same, even if it takes a Special Session."

"Our legislators are telling me they are ready to act to give fuel tax relief to everyone - our commuters, retirees, families and working people. Temporary legislative funding measures can be approved to keep construction projects rolling."

Professor Will Maples, an agricultural economist at Mississippi State University, explained the current federal and state breaks are helpful, but may have limited effect due to timing. 

"It will be helpful, but given that we are over with a majority of our corn and soybean harvest in the state, the impact on the row crop sector will be limited," Maples wrote in an email. "It will help producers who still have grain to transport to buyers."

Short of the war in Iran ending, though, fuel prices are likely to stay high and gas tax breaks could introduce signficant deficits in tax revenue (though breaks would introduce short-term relief for commuters and industries like farming and logging). As of Tuesday, Trump was additionally weighing suspending the federal gas tax.