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Red-dyed diesel: What is it, and can you use the tax-free fuel?

Red-dyed diesel: What is it, and can you use the tax-free fuel?

Summary

President Donald Trump signed an order to allow the continued use of red-dyed diesel fuel. This type of fuel is dyed red to show it is tax-free and meant for specific uses.

Key Facts

  • Red-dyed diesel is a type of fuel marked with red dye.
  • It is tax-free, meaning no fuel taxes are charged on it.
  • This fuel is intended for special uses, not for regular cars on public roads.
  • President Trump signed a directive to extend the permission to use red-dyed diesel.
  • The extension allows industries like farming, construction, and heating to use the fuel without paying taxes.
  • Using red-dyed diesel in regular vehicles or public roads is illegal.
  • The dye is added to help officials check that the fuel is used correctly.
  • The order helps these industries save money on fuel costs while following government rules.
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