How Much Cheaper is Texas Dyed Diesel?

bulk dyed diesel for construction sites in Texas

It depends. For one vehicle, it might not make that much difference over a month. But, if you have a fleet of off-road construction equipment, the savings can be substantial.

Why is Texas Dyed Diesel Cheaper?

The answer is pretty simple. Texas dyed diesel is cheaper because it is not subject to state and federal excise taxes .

Regular diesel sold for vehicles used on public roads has state and federal taxes. So, diesel for your truck, car, or SUV would cost more than for your excavator or dozer. You can find out more about dyed diesel fuel tax in Texas from the Comptrollers website.

You may have heard dyed diesel called by these other names:

  • off-road diesel
  • off-highway diesel
  • red fuel
  • red diesel
  • alternative fuel

What is Texas Dyed Diesel Used For?

The Texas Comptroller’s Dyed Diesels Fuel end-user application has all the information you need. It specifically goes over the use of dyed diesel for non-agricultural and agricultural use:

Dyed diesel for “non-agricultural authorizes the tax-free purchase of only dyed diesel fuel for use in off-highway equipment operated in Texas for non-agricultural purposes. Non-agricultural purposes include diesel fuel used by construction companies (road, commercial buildings or residential), manufacturers (forklifts, loaders, welding machines, space heaters or generators), commercial trucking companies or excavating companies (land clearing or mowing services). Non-agricultural also consists of agricultural cooperatives, associations, cotton gins, farm supply stores, tractor supply stores, feed stores or veterinary services.”

Dyed diesel “for agricultural users authorizes the tax-free purchase of only dyed diesel fuel for exclusive use in agricultural off-highway equipment operated in Texas, such as a tractor or combine, on a farm or ranch. A farm or ranch is one or more tracts of land used, either in whole or in part, in the production of crops, livestock and/or other agricultural products held for sale in the regular course of business. A feed lot, livestock auction facility, dairy farm, poultry farm, commercial orchard, commercial nursery, timber operation or similar commercial agricultural operation is a farm or ranch. Timber operations include the production of timber including land preparation, planting, maintenance and gathering of trees commonly grown for commercial timber.”

Source: www.Comptroller.texas.gov “Texas Dyed Diesel Fuel End User Signed Statement Number Registration” 2018. https://comptroller.texas.gov/forms/ap-197.pdf

How to buy dyed diesel in Texas

The ins and outs of purchasing red diesel can be complicated. But there are three necessary things you have to do:

1. Make sure you qualify. Here are the dyed diesel fuel regulations Texas

2. Fill out the forms – make sure you keep copies of everything

3. Choose fuel with the right specifications

Where can you find off-road diesel?

For almost 30 years, Ricochet Fuel has provided off-road diesel delivery, and our diesel fuel SDS shows our quality. We offer customized services to all industries, especially construction. Call us today about the delivery of dyed diesel fuel directly to your site.

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