News Releases for October 2007
October 03, 2007
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Hoeven Requests IRS Waiver On Red Diesel Fuel
Governor Continues To Push For Increased Supplies For Harvest
BISMARCK, N.D. – Gov. John Hoeven today said his office has contacted the Internal Revenue Service (IRS) to request a temporary waiver allowing the use of red dyed fuel to help meet increased demand for diesel during the record harvest. The agency said it will weigh the request.
Diesel supplies have been lower than usual because a number of refineries are down owing to fires and floods. Others are currently down for scheduled maintenance and expansions. These conditions, combined with increased demand for harvest, have created shortages and high prices statewide.
“One of the ways we’re trying to help increase the availability of supply is to have the IRS waive the restrictions on red dyed diesel fuel,” Hoeven said. “At the same time, retailers need to do all they can to get adequate supplies to keep prices in line for farmers, and industry needs to help farmers by anticipating peak demand.”
Hoeven’s office has also been in regular contact with Tesoro Petroleum and other regional refineries to address tight diesel supplies. Tesoro retains 75 percent of its production in-state, and has agreed to try to increase that percentage. Other refiners have also said they will work to increase availability.
Hoeven has taken a number of steps to help with potential pricing pressure and tight supplies. He has waived hours of service restrictions until at least October 9 for fuel delivery drivers in the state to help with long waits at distribution points. He has also pressed refineries to provide more fuel to North Dakota to increase supply and help ease prices.
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