How could Patrick Morrisey's executive order allowing off-road diesel affect Scott Varner?
The allowance of off-road diesel may reduce state revenue collected by West Virginia's Treasurer The executive order permits red-dyed off-road diesel to be used on West Virginia highways. Off-road diesel is characterized in the reports as fuel used by parties who did not pay the West Virginia and federal excise taxes. By allowing this cheaper fuel to be used on state roads, the order could reduce the volume of taxed fuel, thereby affecting the state revenue stream managed by the Treasurer. While the order provides temporary relief, saving drivers around 20 cents per gallon, the long-term financial impact on state tax collection remains uncertain.
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How it reaches Scott Varner
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Patrick Morrisey issued an executive order in West Virginia permitting the use of off-road diesel fuel on highways. This red-dyed diesel is typically cheaper than regular highway diesel. The order was intended to provide temporary relief to industries such as coal, trucking, and agriculture.
The full event1independent outlet -
The executive order permits the use of off-road diesel, also known as red-dyed diesel, on West Virginia highways. This fuel is typically used by industries like coal, trucking, and agriculture. Crucially, the reports state that off-road diesel is used by those who did not pay the West Virginia and federal excise taxes, and it is cheaper than regular highway diesel, saving drivers around 20 cents per gallon.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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The facts so far
As reported. Each one links to where it comes from.
- The executive order allows red-dyed off-road diesel on highways in West Virginia.wchstv.com
- Off-road diesel is used by those who did not pay the West Virginia and federal excise taxes.wchstv.com
- The order provides temporary relief to industries like coal, trucking, and agriculture, saving drivers around 20 cents per gallon.wchstv.com
Why it matters
State treasurers are responsible for managing the state's revenue, which relies heavily on excise taxes collected from fuel sales. The allowance of off-road diesel, which is explicitly linked to not paying West Virginia excise taxes, introduces a mechanism for cheaper, untaxed fuel to be used on state highways. If this usage increases significantly, it could put pressure on the state's financial stability and the revenue projections managed by the Treasurer.
This change is part of a broader discussion about fuel regulation and taxation. While the order offers immediate cost relief to industries, there are long-term concerns raised by fuel industry experts regarding the dye's potency and potential future costs associated with cleaning filters and tanks.
What we don't know yet
- What is the estimated long-term reduction in state excise tax revenue?
- Will the state implement any compensatory measures to offset the potential loss of tax income?
What would change this answer
Who else could feel it
Other possible ripples from the same event.
Reporting
- wchstv.comThursday
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.