Oct 10, 2026 · 20 min · 10 segments
Send us Fan Mail Is red-dyed diesel a worthwhile option for your pickup? In this Truck News Recap, Tim Esterdahl explains why fuel compatibility…
Tim EsterdahlHost
And I say usually, because sometimes there are some differences, but this is typically usually the same type of fuel.

And this is just a dye in it, a red dye, like food coloring, to identify it for tax treatment.

It is commonly associated with off-highway work, including farm, some construction equipment, tractors, that kind of stuff.

So the IRS says it's qualifying dyed fuel generally exempt from federal... diesel excise tax.

It still carries the 0.1 cent per gallon leaking underground storage tax, tank tax, but it does not have the federal diesel excise tax.

So here's what you need to know is that it's identified for the taxable purpose that it has a federal penalty of $1,000 or $10 per gallon involved if you're caught with this diesel, type of diesel fuel, dye fuel in your truck when you're not allowed to use it.

How much does it save you? Well, the White House uses a 24.4 cent federal diesel tax to illustrate the potential benefit.

This is according to the press release they put out with the president's photo here in Grand Island.

viewing this as being a good thing, a semi-truck using this stuff, and that if other states allow this to happen, this fill-up can be over $100 if they take away the state tax as well as the federal tax, which is happening in some states.

They have two spots, 10 o'clock and 11 o'clock spot at WDRB there in Louisville, Kentucky.

If you're watching, hi, how are you doing? But they pointed out that it's between $60 or $100 in 250-gallon fill.

Now, for consumer trucks, like three-quarter-ton or one-tons, you're looking at either 30 gallons or 34 gallons.

And I say usually, because sometimes there are some differences, but this is typically usually the same type of fuel.

And this is just a dye in it, a red dye, like food coloring, to identify it for tax treatment.

It is commonly associated with off-highway work, including farm, some construction equipment, tractors, that kind of stuff.

So the IRS says it's qualifying dyed fuel generally exempt from federal... diesel excise tax.

It still carries the 0.1 cent per gallon leaking underground storage tax, tank tax, but it does not have the federal diesel excise tax.

So here's what you need to know is that it's identified for the taxable purpose that it has a federal penalty of $1,000 or $10 per gallon involved if you're caught with this diesel, type of diesel fuel, dye fuel in your truck when you're not allowed to use it.

How much does it save you? Well, the White House uses a 24.4 cent federal diesel tax to illustrate the potential benefit.

This is according to the press release they put out with the president's photo here in Grand Island.

viewing this as being a good thing, a semi-truck using this stuff, and that if other states allow this to happen, this fill-up can be over $100 if they take away the state tax as well as the federal tax, which is happening in some states.

They have two spots, 10 o'clock and 11 o'clock spot at WDRB there in Louisville, Kentucky.

If you're watching, hi, how are you doing? But they pointed out that it's between $60 or $100 in 250-gallon fill.

Now, for consumer trucks, like three-quarter-ton or one-tons, you're looking at either 30 gallons or 34 gallons.
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