Red Diesel Anyone using it?

[Just George]

Have seen some news releases recently regarding allowing use of red diesel for over the road equipment.

Curious if anyone is using it, your experience, and does the open roads fuel card work with a red diesel purchase?

Any thoughts on "long term" effect. Mostly wondering if the red dye in the system will somehow be an issue after the red dye use is once again off road only.

 

[Kevin D Pem]

The only reason for the dye is for road tax.

 

[Just George]

The only reason for the dye is for road tax.

@kevin d Penn Kevin understood, but based on recent news reports it sounds like the federal government has decided it's OK at least for some period of time, for over the road use of Red Diesel which does not have the tax. I believe there may also be some states that also do not tax red diesel. So I'm curious if anyone has begun to use Red Diesel in their travels and what their experience has been. I'm not sure how long the evidence from the dye stays in place in the engine / filters etc. but would not want to have an issue later where I'm accused of dodging the tax by unauthorized use of Red Diesel.

 

[Just George]

Answered some of my own question regarding Open Roads. I spoke with Open Roads and was told the Open Roads program does NOT support Red Diesel.

 

[Palehorse89]

The Head Cheese went about this wrong, Dyed fuel is hard to find............RV'ers and Semi's will not be able to find it very easy if at all. 5-6 State's have now dropped the Gas n Fuel tax...........this is what needs done. I live in Pa. with fuel at $6.59 right now, Ohio is a lot lower with their .47 cent tax taken off.......
Pa. has a 74.1 tax on a gallon of fuel !!!! They are talking about also dropping the tax........all the States need to.........to bring relief.....

 

[redbaron]

We have Dyed fuel delivery. We store 1500 gallons, and get a delivery of 1200 gallons. This gives me a savings after all fees of approx $1.00 off the cheapest road fuel price.

There are lots of places to get dyed fuel at the pump in rural america, and 0 places to get this along the average highway.

The only thing this might affect is the short term loss of sales of ATF Quart size bottles (IYKYK)

 

[DKRITTER]

I have a 600+ mile trip coming up this weekend. Any suggestions on finding a place to fill up a MH?

 

[Holdmybeer]

I have a 600+ mile trip coming up this weekend. Any suggestions on finding a place to fill up a MH?

As pointed out above it’s readily available in rural farm areas, but you’re unlikely to find it commercially available elsewhere.

 

[Phillbo]

Does not matter the color, find a state that is waving the tax and you get the same results....

 

[Kevin D Pem]

I have a 600+ mile trip coming up this weekend. Any suggestions on finding a place to fill up a MH?

Major changes coming in our government. Fuel tax is just one thing on the agenda. I don't expect the fuel tax to return, and it may be falling off at your local pumps soon, if not by the time you hit the next truck stop.

 

[redbaron]

Major changes coming in our government. Fuel tax is just one thing on the agenda. I don't expect the fuel tax to return, and it may be falling off at your local pumps soon, if not by the time you hit the next truck stop.

You think this will include SALT too, or just Fed?

 

[Kevin D Pem]

All I know is there are changes coming. Can't speculate any further.

 

[Underboss]

Major changes coming in our government. Fuel tax is just one thing on the agenda. I don't expect the fuel tax to return, and it may be falling off at your local pumps soon, if not by the time you hit the next truck stop.

The US debt is growing exponentially, taking away these federal taxes will lose even more. I can see some states cutting some taxes, but they and the fed will only be cut them temporarily
As for red diesel, when that action ends, you will be changing out your fuel filters so if ever checked they are not red

 

[Holdmybeer]

All I know is there are changes coming. Can't speculate any further.

I don't expect prices at the pump to reflect a 1 to 1 drop in the tax. Prices on commodities in this epoch are determined by how much the seller thinks the consumer will pay, not a set margin %. Otherwise big oil wouldn't be rolling in windfall profit due to all this. If your margin remains the same, the only way you get richer is when you sell more. The CEO of Kroger said, " Inflation isn't necessarily the primary driver of increasing grocery prices, it's rather "inflation noise"". Same as it's not tariiffs primarily driving increased retail prices, but largely tariff noise. Noise doesn't add 1¢ to the wholesale price but adds many ¢ to the retail price and every one of those pennies is pure profit.
All big oil need do is drop the price this week $.24, and raise it back next week on the pretext a camel tripped over a pipeline in Saudi Arabia and they're now making another $.24 a gallon.

 

[MemoriesByTheMile]

I noticed that on the fuel apps like Greenlane and Mudflap (which show both normal diesel and reefer pricing) both fuels are now the same price instead of the typical higher pricing for normal diesel).