How Much Cheaper Is Texas Dyed Diesel?

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

Learn Even More & Get Questions Answered at Ricochet Fuel’s Dyed Diesel Content Hub

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

Texas Dyed Diesel: Essential Savings for Off-Road Businesses

For Texas businesses operating off-road equipment, dyed diesel offers an effective way to cut fuel costs. Distinctively red-dyed, this fuel is exempt from federal and state fuel taxes, allowing companies in construction, agriculture, and manufacturing to significantly reduce expenses.

Why Dyed Diesel is Cost-Effective

Dyed diesel, also known as red diesel or off-road diesel, is reserved for vehicles and machinery not used on public roads. Unlike regular diesel, dyed diesel is not taxed, making it cheaper for industries that operate heavy equipment. Construction companies fueling bulldozers, loaders, and excavators save substantially, especially with high fuel demands.

Industries Benefiting from Dyed Diesel

Texas permits dyed diesel use in a variety of sectors, each using fuel-intensive machinery:

• Construction: Fuels equipment for large-scale projects in residential, commercial, and road work, keeping essential machinery running without excessive fuel costs.
• Agriculture: Supplies tractors, combines, and other farming equipment, helping farmers and ranchers save on operational costs crucial for their daily operations.
• Manufacturing & Warehousing: Used in forklifts and loaders within warehouses and large facilities, dyed diesel powers essential equipment in manufacturing sectors.
• Timber and Landscaping: Supports land-clearing, timber operations, and landscaping equipment, making it ideal for businesses that need reliable, tax-free fuel.

Steps to Start Using Dyed Diesel

Getting started with dyed diesel involves three steps:

1. Confirm Eligibility: Ensure your vehicles and machinery qualify under Texas laws for dyed diesel use.
2. File Documentation: Register your business and maintain accurate records to comply with state regulations and avoid any fines.
3. Check for Texas State Incentives: Periodically review Texas fuel incentives or tax exemptions, as these can provide additional savings for certain types of equipment or businesses in specialized industries. The Texas Comptroller’s Office occasionally updates eligibility, so staying informed can uncover new cost-saving opportunities.

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

Learn 3 ways how to get Dyed Diesel for you next project or job site

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.

Get Dyed Diesel delivered to your yard or job site with Ricochet Fuel!