Whitmer Declares Energy Emergency, Eases Diesel Rules For Farmers

Authored by Kimberly Hayek via The Epoch Times,

Michigan Gov. Gretchen Whitmer declared a state of energy emergency on Oct. 12, citing disruptions to global oil markets from the war in Iran and what she said was the nation’s largest year-over-year rise in average gasoline prices in Michigan.

The order allows certain farm and logging vehicles to use dyed diesel on public roads.

In her emergency order, Whitmer said that Michigan’s farmers and loggers are facing record-high diesel prices, slim margins, and sharp market swings, with some costs passed on to consumers.

“These industries already purchase and maintain substantial supplies of dyed diesel for off-road equipment. Therefore, granting eligible highway-licensed vehicles temporary access to this fuel would provide immediate relief,” she wrote.

Her order suspends specific provisions of the Motor Fuel Tax Act that normally bar such use of dyed diesel.

Global Supply Shrinks

Armed conflicts have tightened crude oil supply, driving up prices for both diesel and regular gasoline.

The hostilities with Iran, which began at the end of February, have slowed shipping through the Strait of Hormuz, the point through which about 25 percent of the seaborne oil trade used to flow, according to the International Energy Agency (IEA). Shortly after the conflict started in March, diesel prices saw their biggest one-week jump on record.

Global diesel markets could remain tight well into next year, with resulting high prices driving inflation and hurting economic growth, as conflicts curb output from the Middle East and Russia, the agency said on Oct. 14.

Combined diesel export losses from the Middle East and Russia totaled 1.3 million barrels per day in September, the agency said.

Pump Prices Bite

The average pump price for a gallon of regular gasoline in the United States was $4.33 per gallon as of Oct. 14, according to the American Automobile Association. Diesel is much higher, at about $6.30 per gallon, reaching a record high of $6.52 at the end of last month.

The emergency order ends when the governor determines the shortage no longer exists, but no later than Dec. 31. Willful interference with the order is a misdemeanor.

Whitmer noted she had issued an earlier order in April that suspended Reid vapor-pressure requirements in gasoline and temporarily lowered consumer prices. She wrote that the federal government created the problem and can fix it.

Whitmer, a Democrat, is term-limited. Michigan Secretary of State Jocelyn Benson, a Democrat, and Rep. John James (R-Mich.) clashed over tariffs on Canada, the war in Iran, and Medicaid in the first debate of the race for Michigan governor on Oct. 6.

Benson blamed the war in Iran for rising fuel prices and said James had voted six times to support the war. Both candidates said they would support suspending Michigan’s gas tax.

Michigan has faced prior fuel-supply disruptions. In 2022, Whitmer declared an energy emergency after a refinery fire in Indiana, temporarily easing certain transport and fuel rules.