Congressman Davis Urges IRS to Provide Emergency Diesel Relief for North Carolina Farmers
WASHINGTON, D.C. — Congressman Don Davis (NC-01) is urging the Internal Revenue Service to grant North Carolina the longest available period of federal penalty relief for highway use of dyed diesel fuel, providing temporary relief as farmers face record diesel prices during harvest season.
Diesel prices in North Carolina have reached all-time highs. According to AAA, the average price of diesel in North Carolina reached $6.2473 per gallon on September 19, up from $3.46 a year earlier. Nationally, the average price of on-highway diesel reached a record $6.529 per gallon for the week of September 21. As of September 3, 2026, the U.S. Department of Agriculture (USDA) projects that farm-sector fuel and oil expenses will increase by $4.8 billion, or 28.8 percent. Farmers are price takers, and many are operating on thin margins.
“Eastern North Carolina is the heart of our state’s agricultural industry. Our growers are paying for the increased expense of fuel after a severe drought. In July, USDA designated over a dozen counties in our region as primary natural disaster areas because of the drought. The growers cannot afford to wait for the cost of diesel to decline. It is vital that growers have access to lower cost diesel on highways to move their crops, livestock, and equipment over long distances,” wrote Congressman Davis.
“At least 10 state governors have suspended or relaxed the penalties for using dyed diesel on highways in their respective states. I strongly urge you to use the authority provided under IRM 25.16.1.5 to grant North Carolina the longest available period of federal penalty relief for the use of dyed diesel on highways. Protecting our farmers is more critical than ever,” continued Congressman Davis.
The full letter is available HERE.