Key facts
- Farmers cite small savings and risk of red residue in fuel tanks as reasons not to use tax-exempt diesel on highways.
- States can fine drivers thousands of dollars if fuel tanks show signs of improper red diesel use.
- Kansas prohibits dyed diesel on public roads unless lawfully purchased out of state, with violators facing felony charges and penalties.
- The Kansas Highway Patrol expressed concern about law enforcement difficulties with the order's restrictions.
- Some drivers find it difficult to locate and access red diesel, with some sites selling only commercial diesel or having non-working pumps.
President Donald Trump signed an executive order this month to expand access to tax-exempt diesel, aiming to lower prices ahead of midterm elections. The order temporarily waives an off-road requirement for red-dyed diesel, which is typically used in farm equipment and exempt from highway taxes. The IRS will not impose penalties for using dyed diesel on highways between October 1 and December 31, but the order does not affect state taxes and penalties.
Farmers, however, expressed skepticism, citing the small potential savings compared to the risk of red residue remaining in fuel tanks, which could lead to significant fines. Kansas, a major grain producer, prohibits dyed diesel on public roads unless lawfully purchased out of state, with violators facing felony charges and penalties of $1,000 to $10,000. Governor Laura Kelly stated Kansas cannot legally implement the order as drafted, and the Kansas Highway Patrol raised concerns about law enforcement difficulties.
For other motorists, access to red diesel is limited. Iowa Governor Kim Reynolds issued a proclamation allowing its use on highways for specific agricultural products, while Texas requires drivers to register for a temporary suspension. In Houston, a Reuters reporter found that some sites listed as selling red diesel only sold commercial diesel, and pumps at another site were not working, with a notice stating red diesel was for agricultural use only.