Virginia's Department of Motor Vehicles (DMV) is setting up the process that will let eligible drivers legally use dyed diesel fuel on Virginia roadways, and says the new process and procedures will be published on or before October 23, 2026. The step follows Executive Directive 5, issued by Governor Abigail Spanberger on October 16, which temporarily authorizes on-road use of the usually off-road-only fuel to combat rising fuel prices.
Source: Virginia Department of Motor Vehicles
According to the DMV, the process will streamline how users pay the backup tax owed to the state for using dyed diesel on the Commonwealth's roadways, and will clarify how the DMV will waive civil penalties for people who first pay that backup tax. Dyed diesel is normally untaxed fuel reserved for off-road and farm equipment, and using it in a registered highway vehicle is normally prohibited.
The governor's office urged affected businesses to keep detailed fuel-purchase records and documentation showing their eligibility, and to consult federal guidance and tax professionals, because Virginia's action does not by itself resolve federal tax liability. The directive took effect on October 16, 2026 and remains in force until December 31, 2026, unless it is extended or rescinded.
Source: Office of Governor Abigail Spanberger (via Morning Ag Clips)
Directive effective October 16 to December 31, 2026. DMV process due on or before October 23. Users must pay the state backup tax first to qualify for penalty waivers, keep purchase records, and still check their federal tax position separately.
Farm and forestry groups welcomed the move. Virginia Farm Bureau President Scott Sink said farmers feel the impact of every cent per gallon when hauling crops or livestock, and Virginia Loggers Association President Frank Myers called the directive meaningful short-term help for loggers facing broader economic pressure, according to the governor's announcement.
The state's Secretary of Transportation, working with the Secretary of Agriculture and Forestry, has been directed to monitor the policy and recommend whether it should continue, change or end. For Punjabi truckers and farm operators who run routes through Virginia, the practical takeaway is to wait for the DMV's published steps before putting dyed fuel in a highway tank, and to keep every receipt.