Priority50-State Watch

Arkansas Extends Dyed-Diesel Highway Waiver Through Year-End

So whatFleets & Owner-operators: Arkansas won't assess per-gallon dyed-diesel penalties on qualifying farm and logging trucks through Dec. 31; confirm vehicle class and IFTA status before relying on the waiver.

FreightFiles Desk | October 31, 2026

Gov. Sarah Huckabee Sanders signed Executive Order 26-16 on Oct. 30, amending EO 26-15 from Sept. 29 to extend a state of emergency tied to diesel prices. The order keeps suspended the penalty provisions in Ark. Code Ann. §§ 26-56-226(a)(1) and 26-56-227(b), which otherwise impose a $10-per-gallon fine when dyed, nontaxed diesel is found in or mixed into the tank of a highway vehicle.

The suspension covers Class 2 through Class 8 vehicles registered in Arkansas that are not licensed under the International Fuel Tax Agreement — in practice, farm and logging trucks running agricultural or timber-harvest work rather than interstate carriers. The governor's order cites a statewide average diesel price of $5.90 a gallon, more than double the $2.46 assumed in University of Arkansas crop budgets, and U.S. Energy Information Administration data showing distillate inventories 13% below the five-year average. It also notes President Trump's Oct. 5 executive order suspending federal red-dye diesel penalties through Dec. 31.

State agencies are directed not to assess the taxes or penalties against covered vehicles during the order's effective period.

What's next

2026-10-31: EO 26-16 takes effect.
2026-12-31: Suspension expires unless further amended or extended.

All sources

Sanders Signs Executive Order to Extend Allowing Farmers, Loggers to Use Tax-Free, Dyed Diesel Fuel on Highways — Government site: Arkansas Governor (.gov), 2026-10-30

Arkansas Extends Dyed-Diesel Highway Waiver Through Year-End — Illustration generated for FreightFiles.