When it comes to choosing fuel for your yard or jobsite, it can get confusing. Do you want clear diesel? Do you want dyed diesel? Are you permitted to use either or both? Let this blog help answer your questions.
Clear diesel and dyed diesel are two types of diesel fuel that differ primarily in terms of their permitted use and taxation. Here’s an explanation of each:
- Clear Diesel: Clear diesel refers to regular or standard diesel fuel, which is typically a light yellow or greenish color. It undergoes refining processes to remove impurities and is commonly used as a fuel for various applications, including transportation, heavy machinery, generators, and heating systems. Clear diesel generally meets the quality specifications set by regulatory bodies and is subject to taxation.
- Dyed Diesel: Dyed diesel, also known as red diesel or off-road diesel, is essentially clear diesel fuel that has been colored with a red dye or marker. The purpose of dyeing the fuel is to indicate that it is intended for off-road or non-highway use, such as in agricultural equipment, construction machinery, boats, and other off-road vehicles. Dyed diesel often enjoys certain tax exemptions or lower tax rates compared to clear diesel, as it is not intended for use on public roads.
The key distinction between clear diesel and dyed diesel lies in their permitted use and taxation. Clear diesel is used for on-road applications and is subject to full taxation, including federal and state fuel taxes. Dyed diesel, on the other hand, is specifically designated for off-road use and is taxed at a different rate or exempted from certain taxes. The red dye in dyed diesel serves as a visual indicator to enforcement agencies that the fuel is not meant for use on public highways.
It’s important to note that using dyed diesel in on-road vehicles or equipment that is not eligible for its use can result in penalties and fines. Regulatory authorities conduct periodic checks to ensure compliance with the designated use of dyed diesel.
Dyed diesel, also known as off-road diesel or red diesel, is a type of diesel fuel that is typically colored red to indicate that it is exempt from certain taxes and regulations imposed on regular diesel fuel. It is primarily intended for use in off-road vehicles and equipment that are not used on public roads, such as construction sites, farms, and industrial facilities. Here are a few reasons why dyed diesel is commonly used on a jobsite:
Cost savings: Dyed diesel is typically less expensive than regular diesel fuel because it is not subject to the same level of taxes and regulatory requirements. This can result in significant cost savings for companies and individuals operating off-road vehicles and equipment on a jobsite.
Regulatory compliance: In many jurisdictions, dyed diesel is legally required for off-road applications to comply with tax and environmental regulations. By using dyed diesel on a jobsite, companies can ensure compliance with the law and avoid penalties or fines associated with using untaxed fuel in off-road equipment.
Fuel identification: The red dye added to dyed diesel serves as a visual indicator that the fuel is not intended for use on public roads. This helps enforcement agencies and tax authorities differentiate between vehicles and equipment that should be using taxed fuel (on-road vehicles) and those that are eligible for dyed diesel (off-road vehicles).
Equipment warranty: Some equipment manufacturers specify the use of dyed diesel fuel in their off-road machinery. Using untaxed fuel or fuels that do not meet the manufacturer’s specifications may void warranties and lead to costly repairs or replacements.
It is important to note that the specific regulations and permitted uses of dyed diesel may vary by jurisdiction. It is advisable to consult local laws and regulations or seek guidance from relevant authorities to ensure compliance when using dyed diesel on a jobsite.
Contact Ricochet Fuel today to get any bulk fuels, including clear or dyed diesel, delivered to you. Ricochet Fuel can deliver to your fuel tank or ours, can provide fleet cards to get diesel at the pump, or fuel directly into your equipment via onsite mobile fueling. We look forward to helping you today!