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Written on: October 2, 2023
If you’re new to dealing with diesel fuels, you may be surprised to know that diesel comes in different colors.
This requirement stems from a mandate by the United States Government, stating that diesel fuel must be available in three variants: clear, red dye, or blue dye. To ensure compliance and make informed decisions when buying diesel, it is crucial to understand the tax and legal implications associated with each type.
Pitmon Oil & Gas is the leader in South and Central Oklahoma for dependable commercial diesel delivery customized to the needs of your business. We’ve been serving area businesses, municipalities, and school districts for more than 30 years.
We also offer on-site fleet fueling, diesel fuel tank leasing, and early delivery so your employees can start work right away. Our pricing is competitive and transparent.
Pitmon Oil & Gas’ diesel services offer a cost-effective solution to help your business save money. By having on-site diesel fuel supply, worker efficiency and productivity are improved as there is no time wasted going to off-site filling stations. Additionally, managing fuel costs becomes easier and more efficient when you have a single source for your diesel fuel supply.
Our fleet consists of meticulously maintained vehicles, and our team of dedicated delivery drivers ensures prompt and safe diesel fuel delivery.
If you run a construction company or any other business that utilizes diesel-powered equipment, we can assist you with that as well. We offer off-road diesel delivery services right to your business, ensuring convenience and efficiency for your operations.
Clear diesel: Clear diesel is a high-quality fuel specifically designed for on-road vehicles, such as cars, trucks, SUVs, snowplows, and even marine vehicles. This fuel, easily accessible at gas stations across the U.S., boasts a low sulfur content and complies with legal taxation requirements. It is the mandatory choice for any licensed diesel-powered vehicle intended for on-road use.
Red-dyed diesel: Most dyed diesel available in the U.S. is red in color, as it is dyed using the chemical additive Solvent Red 26 or 164. Red-dyed diesel is specifically designated for use in off-road vehicles and applications such as farm tractors, heavy construction equipment, and generators. It is important to note that red-dyed diesel contains a higher sulfur content compared to clear diesel. Due to it not intended for being used in transportation or on roads, this fuel is exempt from the federal excise tax.
Blue-dyed diesel: Blue-dyed diesel fuel is essentially the same as red-dyed diesel, with the distinction that it is exclusively designated for usage in vehicles and equipment owned and operated by the U.S. Government.
The federal excise tax does not apply to off-road diesel as it is not intended for transportation purposes. To differentiate off-road diesel from on-road diesel, a red dye is added. The penalties for using off-road diesel in on-road vehicles are substantial, potentially resulting in substantial fines for each violation.
The Internal Revenue Service (IRS) strictly enforces the usage of dyed diesel fuel. If you use off-road diesel in a vehicle that is intended for on-road use, you could potentially face penalties of up to $1,000 per violation. Additionally, if caught, you may be subject to a tax of $6 per gallon of the dyed diesel fuel used. It is important to note that individual states may also impose their own penalties. For instance, in Oklahoma, the penalty can amount to $10 per gallon or $1,000 per violation.
Ready for diesel fuel delivery and service your Oklahoma business can trust? Get in touch with the commercial fuels team at Pitmon Oil & Gas today!
