Jubitz Fleet Services
Understanding Dyed Diesel Fuel
March 31, 2021
The world of diesel fuel products is expansive, so we’re demystifying dyed diesel in this blog post. Regular, clear diesel fuel is readily available at almost all fuel stations across the United States. It’s a common option and referred to by many names. You might hear it called regular diesel, auto diesel, highway diesel and on-road fuel. But what about it’s red-dyed sibling? Like clear diesel, there isn’t one standard industry name. People say red diesel, dyed diesel, colored diesel, and off-road diesel. Whether you’re a vehicle owner, operator or just plain curious, keep reading to learn about the purpose of off-road diesel.
Clear and dyed diesels perform the same. While some clear diesels are tinted, they are not as deeply pigmented as red diesel. The red dye in off-road diesel simply distinguishes it from regular diesel. This distinction is important because dyed diesel is an untaxed fuel option. It’s use is strictly for off-road, non-highway purposes. In contrast, on-road vehicles use regular diesel which is subject to fuel taxes because they use government-funded infrastructure like public roads and highways.
Taxes on Diesel
City and state governments can implement fuel taxes. The funds they raise often help support the department of transportation. You will see this reflected in varying on-road diesel prices at cardlock stations. In Oregon, the Oregon Department of Transportation website states that, “Oregon’s fuel taxes are used for the creation, preservation and maintenance of Oregon’s transportation infrastructure.” For this reason, using off-road diesel in commercial vehicles is a form of tax evasion which is illegal. Discussing your vehicles and diesel usage with tax and fuel consultants is the best way to ensure compliance.
Dyed Diesel Applications
Some people refer to off-road diesel as farm diesel, but it’s not limited to agricultural use. You often find dyed diesel at construction sites. Common off-road equipment include diesel-powered tractors, construction equipment, yard trucks and generators. While these vehicles can’t be driven to the pump, fueling service companies typically offer on-site mobile fuel delivery. Customer Service Manager of Jubitz Fleet Services, Liz Valesca, explains that, “At Jubitz, we generally deliver off-road diesel to organizations with tanks that fuel diesel equipment and we do fuel off-road vehicles and equipment. We also have designated cardlock stations with dyed diesel which can be highly convenient for our customers.”
Due to off-road restrictions, when people purchase dyed diesel they usually fill a small tank. Alternatively, people purchasing at a pump may be put dyed diesel in refrigerated trailers that qualify as off-road because the trucks pulling them are fueled with on-road diesel. Smooth fleet operations mean having fuel when and where you need it. If you’re ready to learn more about Jubitz’s fuel services and how they can benefit your operations, reach out! Give us a call at 1-800-523-0600 or click here for more information.