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.

 

[Underboss]

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.

Got pulled over once, years ago in a dp. I was clean so there was no issues

 

[Palehorse89]

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.

What ever card you use has to fit the computers algorithm to allow you to pump Reefer fuel.............Like the Opens Roads RV fuel card will not allow you to pump it............

 

[osuallen]

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

Distributers can charge whatever they think the market will bear. Both regular diesel and dye diesel are exactly the same diesel. the dye diesel has dye added - that is the only difference in the product. Again - the pump price for regular diesel = diesel fuel cost + taxes. Pump price for dye diesel = same fuel cost + less tax. Obviously a distributer or retailer could try to gouge on the red dye, but the free market would soon bring him back to reality.

 

[Holdmybeer]

Distributers can charge whatever they think the market will bear. Both regular diesel and dye diesel are exactly the same diesel. the dye diesel has dye added - that is the only difference in the product. Again - the pump price for regular diesel = diesel fuel cost + taxes. Pump price for dye diesel = same fuel cost + less tax. Obviously a distributer or retailer could try to gouge on the red dye, but the free market would soon bring him back to reality.

The free market is a 20th century fixture that is largely myth in the 21st century. Pricing cartels mostly determine what you pay today. 4 meat processing giants determine what you're paying for beef, not competition ( the ranchers are however still struggling because that same cartel that's charging you more is paying them less). The rent you'll pay for an apartment is determined by an algorithm which most every landlord uses. The only choice you have is either buy or don't buy, but you can't just go down the street and find a better price anymore that's been seen to. Peter Thiel, the billionaire venture capitalist and co founder of PayPal said, "competition is for losers".

 

[TheLooks]

The free market is a 20th century fixture that is largely myth in the 21st century. Pricing cartels mostly determine what you pay today. 4 meat processing giants determine what you're paying for beef, not competition ( the ranchers are however still struggling because that same cartel that's charging you more is paying them less). The rent you'll pay for an apartment is determined by an algorithm which most every landlord uses. The only choice you have is either buy or don't buy, but you can't just go down the street and find a better price anymore that's been seen to. Peter Thiel, the billionaire venture capitalist and co founder of PayPal said, "competition is for losers".

And that is why Trump signed to allow farmers to sell their own beef. Cut out the middleman.

 

[Underboss]

And that is why Trump signed to allow farmers to sell their own beef. Cut out the middleman.

They always have been allowed to sell their own beef. All he did was cut state inspection regulations. Then he allowed beef from Argentina to flood the market, so not sure how that helped our US cattlemen