Red-dyed diesel: What is it, and can you use the tax-free fuel?
Red-dyed diesel: What is it, and can you use the tax-free fuel?
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(NEXSTAR) – Diesel prices have been high as of late, prompting President Trump to announce new efforts to lower costs on Monday.
As expected, those efforts included expanding access to red-dyed diesel. It should, in theory, be more affordable, but it isn’t quite that simple. It may also not have the largest impact, experts warn.
Here’s what to know about the diesel, including whether or not your vehicle can use it.
What is red-dyed diesel?
Simply put, it’s diesel with red dye added.
The dye is meant to indicate that the fuel is exempt from state excise taxes and the 24.4-cents-per-gallon federal tax. The coloring also helps “law enforcement … identify it to enforce penalties and back taxes for on-road use,” a fact sheet from the White House explains.
Can I use red-dyed diesel?
Sure, if you operate a vehicle that runs on diesel.
Red-dyed fuel is already available to farmers, for example, who use it for........
