With more and more goods and services seeing astronomical price increases over the last couple of years, it’s normal to be asking why things cost what they do and why some prices may seem strange when compared to a similar item. This is definitely true when looking into pricing for fuel – whether it is gas or diesel.
Uses of Clear Diesel vs. Red Dyed Diesel
In order to explain why clear diesel is more expensive, we first have to establish the distinction between clear and dyed diesel. Clear diesel is used in on-road vehicles or vehicles that use government-funded roads, highways, and infrastructure. Dyed diesel, also known as red dyed diesel or off-road diesel, is used primarily in off-road vehicles or heavy equipment, such as tractors or generators.
Clear diesel has a lower sulfur content and appears clear or slightly tinted when fueling. Typical cars, trucks, and SUVs will use this type of fuel at the gas station. However, dyed diesel is dyed red for identification purposes and is not typically readily available at U.S. fuel stations. Instead it must be purchased through a reputable and reliable diesel supplier, like Hart Fueling Services. It is illegal and punishable by law to use dyed diesel in any vehicle that goes on the road. In addition, attempting to remove the dye or tamper with the diesel can result in significant fines.
The Cost of Clear Diesel
So, why is clear diesel more expensive? The answer is simple, really. Clear diesel, because it is used in vehicles that utilize public infrastructures like roads and highways, is taxed and regulated by the IRS. At first, paying more for the same substance may seem frustrating, but the benefits result in safer roadways as well as maintained bridges and highways.
On the other hand, red dyed off-road diesel is not taxed and is therefore able to be sold at a lower price point.
Why Is Off-Road Diesel Fuel Tax-Free?
Because off-road dyed diesel is used in off-road settings such as farms and construction sites, state and local taxes for highways do not apply. Some vehicles and equipment that commonly use it include tractors, generators, backhoes, excavators, forklifts, and reefers. These vehicles and machinery are not used on government-funded roads and highways and are therefore not contributing to the cost of maintaining that infrastructure.
Hart Fueling Offers What You Need
Hart Fueling Services offers both clear and dyed diesel options depending on your needs. For a quote on our services – including off-road diesel delivery, fleet fueling, generator refueling, and more – please contact us. You can also learn more about who we work with here on our website.