Sylvie Willis
AG Diesel, also known as red diesel, off-road diesel, or dyed diesel, is a type of diesel fuel that is used for off-road vehicles and equipment that are not operated on public roads. This includes agricultural equipment, construction equipment, heating oil, and generators. Due to its off-road designation, AG Diesel is not subject to the same taxes as fuels used for on-road vehicles, making it a more cost-effective option for businesses and farmers. The use of red dye in the fuel distinguishes it from other types of diesel and also indicates that it is untaxed and for off-road use only. While AG Diesel offers savings and convenience for certain industries, it is important to note that using it in on-road vehicles is illegal and can result in significant fines.
Characteristics and Values of AG Diesel Fuel:
| Characteristics | Values |
|---|---|
| Type of Fuel | Diesel |
| Use | Off-road vehicles and equipment not operable on public roads, such as agricultural equipment, construction fueling, heating oil, boiler fuel, and generator fuel. |
| Taxation | Untaxed and exempt from road taxes, which makes it significantly lower in cost compared to other fuels. |
| Color | Dyed red to indicate untaxed status and distinguish it from other fuels. |
| Sulfur Content | Can be high sulfur fuel (over 500 parts per million of sulfur) or ultra-low sulfur fuel. |
| Performance | May have lower energy components compared to other grades but is more expensive. |
| Weather Conditions | Performs well in cold weather conditions due to the absence of paraffin, which prevents gelling and maintains liquidity. |
| Legality | Using AG Diesel in on-road vehicles is illegal and can result in fines. |
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What You'll Learn
AG Diesel is also known as red diesel
AG Diesel, or agricultural diesel, is a type of fuel used for farming and agricultural applications. It is also known as red diesel due to the red dye added to the fuel to distinguish it from other types of diesel. The red colour indicates that the fuel is untaxed and for off-road or non-road use only. Using red diesel for on-road purposes is illegal and can result in hefty fines for tax evasion.
Red diesel is commonly used in the construction, farming, agriculture, manufacturing, hospital, and data centre industries. In construction, it is used in off-road vehicles and equipment such as bulldozers, bobcats, generators, and backhoes. Farmers use red diesel to power their farming equipment and vehicles, such as tractors and recreational and utility vehicles. Carnivals and fairs may also use red diesel for their diesel engines.
The use of red diesel is restricted to specific industries and applications. It is important to understand these restrictions to avoid legal consequences and penalties. In the United States, red diesel may have sulfur levels that exceed the limits for road use. However, in recent years, there has been a push to reduce sulfur content in all fuels, including off-road diesel, to meet EPA regulations.
While red diesel is primarily used for off-road purposes, there are some exceptions where it can be used for on-road applications with the proper paperwork and tax exemptions, as is the case in Oregon, USA. Additionally, in certain countries like the United Kingdom, Belgium, and the Netherlands, red diesel is also used in agricultural vehicles, home heating tanks, and refrigeration units on vans and trucks.
The colouring of diesel fuel with a red dye is a common practice to indicate its untaxed status and restrict its use to off-road or agricultural applications. This helps authorities easily identify and prevent tax fraud.
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It is used for off-road vehicles and equipment
AG Diesel, also known as red diesel, is used for off-road vehicles and equipment that are not operated on public roads. This includes off-road farm equipment, construction equipment, and vehicles with refrigerated trailers. It is dyed red to distinguish it from other types of fuel and to indicate that it is untaxed and for off-road use only. The use of red diesel on public roads is illegal and can result in significant fines.
Red diesel is often used by agriculture companies and farms for their off-road equipment and vehicles. It is also used for heating oil, boiler fuel, and generator fuel. By using red diesel, these companies can save money on fuel costs, as it is typically cheaper than other types of diesel fuel.
The process of finding gas stations that offer red diesel can be challenging. However, there are online tools and networks, such as the Commercial Fueling Network (CFN), that provide information on gas stations, cardlocks, and truck stops that offer red diesel at the pump. To purchase red diesel, a business fuel card is typically required, as fuel card providers need to verify that the fuel is being used for qualified off-road equipment to comply with state and federal laws.
While red diesel is commonly associated with untaxed fuel, it is important to note that some states, like Oregon, allow certain off-road uses to buy on-road fuel with a tax exemption. This exemption may depend on factors such as vehicle weight and the ability to track fuel usage for tax filings.
In terms of fuel quality, red diesel has historically been associated with high sulfur content. However, due to EPA regulations, today's red diesel is typically ultra-low sulfur diesel. This change has been necessary to ensure that off-road construction and agricultural equipment can operate without major emissions-related issues.
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It is untaxed and significantly cheaper than other fuels
AG diesel fuel, also known as red diesel, is untaxed fuel for off-road vehicles and equipment that isn't operated on public roads. As it is not subject to the same taxes as fuels used in highway vehicles, it is significantly cheaper.
In the United States, diesel fuel with over 500 parts per million of sulfur content is considered high-sulfur diesel. Off-road and dyed diesel fuels can be ultra-low sulfur but are not guaranteed to be. In recent years, EPA standards have required off-road construction and agricultural equipment to have an emissions system that allows ultra-low sulfur to operate without major problems. Today, most off-road diesel being delivered is ultra-low sulfur.
Dyed diesel is typically used for heating oil, construction fuel, agricultural fuel, generator fuel, or other off-road uses. It is illegal to use dyed diesel, off-road diesel, or heating oil in an on-road vehicle. The fine for doing so in Oregon, for example, can be as high as $10,000, and the state aggressively pursues this type of tax avoidance.
The cost of red diesel fuel is significantly lower than other types available at the pump. Off-road diesel is dyed red to distinguish it from other types of fuel and because it is illegal for use on public roads. The savings are roughly 40 cents per gallon, depending on the state.
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It can be high-sulphur fuel, but is now typically ultra-low-sulphur
AG Diesel, also known as red diesel, is a type of fuel for off-road vehicles and equipment that are not operated on public roads. As such, it is not subject to the same taxes as fuels used in highway vehicles. AG Diesel is typically dyed red to distinguish it from other types of fuel and to indicate that it is untaxed and for off-road use only.
Historically, AG Diesel could be high-sulphur fuel, with high-sulphur diesel defined as diesel fuel with over 500 parts per million of sulphur content. However, in recent years, there has been a push to reduce sulphur content in all fuels in the United States, led by EPA regulations. As a result, today's AG Diesel is typically ultra-low-sulphur diesel.
Ultra-low-sulphur diesel has a sulphur content of less than 15 parts per million. This reduction in sulphur content is important because it helps to reduce emissions and can prevent maintenance issues in engines. While ultra-low-sulphur diesel is now the standard for AG Diesel, it is not guaranteed, and older batches of AG Diesel may still have higher sulphur content.
The use of ultra-low-sulphur diesel is not limited to AG Diesel but is also common in heating oil, construction fuel, generator fuel, and other off-road uses. The transition to ultra-low-sulphur diesel has been supported by EPA standards, which require off-road construction and agricultural equipment to have emissions systems that allow ultra-low-sulphur diesel to operate effectively.
Overall, while AG Diesel historically had high sulphur content, the push for cleaner fuels and EPA regulations have led to the widespread adoption of ultra-low-sulphur diesel in the agricultural and off-road sectors.
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It is illegal to use in on-road vehicles
AG Diesel, also referred to as red diesel, is a type of fuel that is intended for off-road vehicles and equipment that are not operated on public roads. As it is not subject to the same taxes as fuels used in highway vehicles, it is significantly cheaper. However, it is illegal to use this type of diesel in on-road vehicles.
Red diesel is dyed red to distinguish it from other types of fuel and to indicate that it is for off-road or untaxed use only. This untaxed fuel is often used in construction, agriculture, and for heating oil, boiler fuel, and generator fuel. Using red diesel in on-road vehicles is against the law, and penalties for doing so can be severe. In Oregon, for example, fines for using red diesel in an on-road vehicle can be as high as $10,000, and the state aggressively pursues such tax avoidance.
The reason for the illegality of using red diesel in on-road vehicles lies in the taxes that are avoided when using this type of fuel. As red diesel is not subject to road taxes, it is only legal for use in off-road applications. This distinction is important for maintaining compliance with state and federal fuel tax laws. Farms, for instance, can receive clear diesel without road taxes, but this fuel is often tracked to ensure it is not being used for on-road purposes.
While red diesel can be high-sulphur fuel, it is now typically ultra-low sulphur diesel due to EPA regulations. This means that it can be used in modern engines without causing maintenance issues. However, older stored red diesel is likely to have a higher sulphur content, which could cause problems if used in newer engines.
To enforce the law against using red diesel in on-road vehicles, officers can test fuel samples by dipping a metal gauge into the tank. This allows them to determine if an unlawful act has occurred and enforce the associated penalties, which can be several thousand dollars for each offence.
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Frequently asked questions
AG Diesel Fuel, also known as red diesel, is made for off-road vehicles and equipment that isn't operable on public roads. It is untaxed and significantly cheaper than other types of fuel.
Red diesel is used for off-road purposes such as construction fueling, agricultural use, heating oil, and other non-taxed diesel fuel uses under state and federal fuel tax law.
The benefit of using red diesel is the cost savings of around 40 cents per gallon, depending on the state.
