There has been quite a bit of talk about red-dye diesel. For those not in the weeds like we are, red-dye diesel is exempt from highway excise taxes and is intended for farm and off-road usage. It operates exactly the same as on-road diesel but is dyed red to make it obvious to enforcement personnel that it is not meant for over-the-road purposes.
On October 5th, President Trump signed an Executive Order allowing red-dye diesel to be used for on-road transportation and deferring the federal highway excise tax through the end of the year.
While 31 states have also agreed to allow red-dye diesel for over-the-road transportation and have waived their states’ fuel excise tax, California has not.
As such, Californians are not able to enjoy the benefits of this tax-free fuel for standard transportation and continue to pay over $8.00/gallon for diesel.