Texas declares disaster as diesel prices soar, seeks EPA waiver

Photo: Ruben Reyes / Pexels Texas Governor Greg Abbott has declared a statewide disaster in response to soaring diesel prices and a fuel shortage, impacting all 254 counties in the state. The declaration temporarily expands the use of dyed diesel on roads and raises weight limits for specific fuel, agriculture, and timber loads. Abbott’s action also includes a request for a temporary waiver from the Environmental Protection Agency regarding federal ultra-low sulfur diesel requirements. This comes as diesel prices in Texas hit an average of $5.86 per gallon, with a record high of $5.97 in September 2026. Key Takeaways Markets suggest that Abbott’s emergency measures could reflect economic pressures but may not significantly alter voter sentiment in the upcoming Texas gubernatorial election. Current pricing indicates a moderate decrease in the likelihood of a Democratic win in the Texas governor race, with YES shares now priced at 15.5%. These developments appear consistent with Abbott maintaining a strong competitive position, as reflected in market pricing supportive of a Republican victory. What to Watch Observers will be keen to see how Abbott’s measures impact his standing with ...