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Should You Be Using Red Diesel?

Offroad diesel, also known as red diesel, is a specialized fuel used for a variety of non-road vehicles and machinery. Unlike regular on-road diesel, offroad diesel is dyed red and is subject to lower tax rates, providing significant cost savings for those who qualify to use it.

The primary distinction between offroad and on-road diesel is the tax structure. Offroad diesel is taxed at a lower rate, as it is intended for use in equipment and vehicles (that do not operate on public roads) such as construction machinery, agricultural equipment, and generators.

This tax differential can translate to substantial savings for businesses and individuals who rely on offroad diesel for their operations.  Red diesel is significantly cheaper than regular diesel because it's exempt from federal and state road-use taxes, saving users typically $0.30 to over $1.00 per gallon, depending on location and current rates.

By utilizing offroad diesel, users can benefit from the cost savings while still powering their essential equipment and machinery. It's a practical and economical solution for those who require a reliable fuel source for their offroad applications.

11th Jul 2024

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