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South Dakota eases dyed diesel restrictions following Trump executive order

South Dakota Governor Larry Rhoden is directing the state’s Department of Public Safety to temporarily ease enforcement of dyed diesel fuel restrictions on highways and public roads.

The action follows President Trump’s executive order aimed at providing relief from high diesel prices through the end of the year.

In a letter, he says the department should prioritize commercial motor vehicle inspections that present a threat to public safety and not attempt to identify the use of dyed diesel fuel on highways and public roads.

However, Rhoden says he cannot waive tax penalties on dyed diesel used for non-tax-exempt purchases, because diesel fuel taxes are set in statute. He says legislation might be necessary to retroactively waive state taxes owed on the products, and pending approval, the waiver would cover from October 6 through the end of the 2026 calendar year.