There was a time when diesel fuel was sold in the U.S. without dye added to it, but times have changed.
The U.S. government now requires diesel gas to be sold with in three different varieties: clear, red, and blue. Understanding the difference among these fuels – and among the tax and legal implications of each – is critical if you intend to purchase diesel fuel.
Here are some basics about the three types of diesel fuel:
Clear fuel has low sulfur levels and is legally taxable. Any vehicle that has a diesel engine and is licensed by the state for on-road use must use this fuel.
Because it is not to be used for on-road vehicles, this fuel is not taxed within the United States.
Because dyed diesel is not taxed, federal and state laws strictly regulate its use; penalties for improper use of dyed fuel range from stiff financial penalties to significant jail time. Distributors cannot knowingly transport dyed fuel with the intent to supply on-road vehicles, and fuel retail locations that carry dyed diesel cannot knowingly sell the gas for use in an on-road vehicle. If you are a retail diesel customer, you cannot knowingly use dyed diesel in an on-road vehicle; if dye is found in an on-road vehicle, the penalties can be extremely high. Be smart!
Looking for supplier of quality on- or off-road diesel for your Northern New Jersey farm, construction company, factory, or other business? We can help. Contact us today to learn more, or to become a Fredericks Fuel customer.
Fredericks Fuel – Serving Oak Ridge, Sparta, and surrounding areas of Northern New Jersey.