# Virginia Temporarily Permits Dyed Diesel Use

Virginia Executive Directive 5 temporarily allows dyed diesel to be used on public roads through **December 31, 2026**, aiming to reduce fuel costs for farmers, loggers, haulers, and related supply chains. The directive instructs the Virginia Department of Motor Vehicles to publish, within five business days, how users can remit state diesel tax. This is a regulatory and operating-cost change—not a solicitation or contract award—but it may affect cost assumptions for public-sector suppliers and contractors whose work depends on fuel-intensive transportation or equipment in Virginia.

- Businesses using the allowance should retain fuel-purchase and eligibility records and review applicable federal tax requirements with the IRS or a tax advisor.
- Virginia contractors and suppliers can account for the temporary measure when evaluating fuel-related costs and pricing for work that relies on hauling, logging, farming, or equipment operations; the allowance ends December 31, 2026.
- The DMV’s state-tax remittance process is a key operational detail for users of dyed diesel on Virginia roads.

**Jurisdictions:** sled
**Industries:** Transportation, Energy & Utilities
**Topics:** Regulatory Compliance, Policy
**Published:** October 20, 2026

### Government Entities
- Commonwealth of Virginia, Office of the Governor
- Virginia Department of Motor Vehicles (Virginia DMV)
- Internal Revenue Service (IRS)
- Virginia Department of Transportation (VDOT)

### Key Quotes
> Today, I am taking action to reduce the strain on Virginians by making sure that dyed diesel is available for on-road use to keep equipment running, food and goods moving, and small businesses operating.
> — Abigail Spanberger, Governor of Virginia

> Within five business days of the Governor’s directive, the Virginia Department of Motor Vehicles shall publish the process to remit state-owed diesel tax for utilization of dyed diesel on Virginia roadways.
> — Executive Directive 5; no individual speaker identified

### Sources
- [October Releases](https://www.governor.virginia.gov//newsroom/news-releases/2026/october-releases/name-1127275-en.html) - VA