Why Red Diesel Is Cheaper Than Regular Fuel

As the cost of fuel rises, some people are exploring other ways to power vehicles and heat homes.

Some people might wonder what the actual difference is between red diesel and the fuel you can purchase at the pump. Firstly, the chemical difference is fairly insignificant. This is fuel used to provide heat to homes. Because of its function, it is taxed at a much lower rate than regular gas. This is done, in part, to make home heating more affordable for those with oil tanks. Dye is added into the oil so that anyone checking will be able to easily tell which oil is being used.

If you have heating oil, you will have a tank outside your property which holds the oil. Vendors use tankers to bring the oil to you. The dye is not harmful to your tank and does not cause problems in the pipes.

Red diesel is not for road use in regular vehicles. If you get caught using it that way, the penalties can be fairly stiff. Law enforcement can pull anyone over if they suspect the vehicle is being powered illegally. If law enforcement catch you using it in a road vehicle, they will seize the vehicle. You face losing your car completely. If you attempt to keep an officer from checking your vehicle you could end up in jail for up to two years and be fined whatever amount a judge feels is appropriate. The police are equipped with indicators that they can insert into your gas line. It will tell them immediately if you are in violation of the law. Big trucks, rather than passenger cars, are most likely to be pulled over.

There are numerous commercial uses for this dyed fuel. Farmers use it in their tractors, combines, and other farm equipment. Construction companies use the fuel for off road engines. These include cranes, bobcats, bulldozers, backhoes, and generators. Even carnivals, fairs, and road shows are allowed to use the fuel as long as they don’t use it for transporting equipment on public roads.

Depending on where you live in the country or what industry you are involved, the fuel has numerous names. Heating oil, generator fuel, gas oil, and medium diesel are all the same thing.

The legal use of dyed fuel helps keep the cost of farming down. It is also beneficial for those in construction and mining. It is not an option for commercial trucking or passenger cars.