October 28, 2026
St. Paul – Rep. Joe McDonald, R-Delano, is asking Gov. Tim Walz to consider temporary diesel tax relief as high fuel prices continue to raise costs for Minnesota businesses and families.
McDonald joined House Republicans in a letter sent Thursday urging Walz to determine whether Minnesota can temporarily allow red-dyed diesel on state highways without state penalties.
Federal action taken earlier this week directed agencies to pursue temporary relief from the federal diesel excise tax and penalties tied to highway use of dyed diesel. North Dakota has already taken similar action at the state level.
“There are a lot of things driving fuel prices right now that Minnesota can’t control,” McDonald said. “What we can control is what the state adds to the price. If there’s a lawful way to give truckers, farmers and businesses some temporary relief, I think we should use it.”
Minnesota’s diesel tax currently stands at 32.6 cents per gallon. The state’s automatic fuel-tax indexing policy has also pushed that rate higher over time, with the next increase set for Jan. 1, 2027.
McDonald said higher diesel costs eventually show up elsewhere too, as businesses face higher transportation and operating costs that can be passed along to consumers.
