Red Diesel Anyone using it?

[redbaron]

Reefer is sold from the same tank, it is just a billing separation so that at the end of the year, truckers can claim a credit from their IFTA tax. Some states do not charge the tax at the pump (Oregon) but most do.

 

[davidndeb]

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.

I expect the new demand will give cause to raise the price on red dye also.

 

[osuallen]

I expect the new demand will give cause to raise the price on red dye also.

Red dye is the same diesel at the same price for fuel. The only difference is that it does not have part of the taxes. So, there is no differential supply-demand curve.

 

[Underboss]

and when this scheme is over, you will have to change your red dyed fuel filters. So remember that cost will hit you down the road

 

[Holdmybeer]

The dye will wash out of the system after several cycles. I would guess there would be a grace period after the programs end. When in N. La. I would get pulled over and dipped occasionally, so the tinted exhaust, since I wasn't running farm diesel, wasn't necessarily all they were looking for.

 

[rjshiflet49]

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

In the truck lanes at Love's, Petro, etc., isn't the "REEFER" fuel the same? Those truck stops are all along the Interstate highway system, so you don't have to search through a rural farm area to find red-dyed diesel. It is easily available commercially through truck stops.

I believe that's all correct from what I've read.

 

[rjshiflet49]

and when this scheme is over, you will have to change your red dyed fuel filters. So remember that cost will hit you down the road

"this scheme" ?

 

[davidndeb]

Red dye is the same diesel at the same price for fuel. The only difference is that it does not have part of the taxes. So, there is no differential supply-demand curve.

So are distributors prohibited from raises their prices? Remember eggs a couple of years ago? Lower supply = higher price.