Skip to main content

Purchasing dyed diesel may seem too complex, but don’t let the regulations scare you off from using this option. This fuel can actually save you significantly in business expenses by reducing taxes and fees. The following will go over the regulations associated with dyed fuels in Texas and how you can incorporate them into your business.

The basics of dyed diesel

This diesel isn’t any different chemically than regular diesel. It is dyed because it is intended only for off-road purposes such as construction, agricultural use, home heating, and other limited purposes. Red dye is used so that it can be differentiated from other types of fuel.

Dyed diesel is cheaper than regular fuel because it is tax exempt. This fuel is an obvious draw for consumers and commercial entities. Texas and other states impose additional rules to control the use of this diesel. It is important to control the use of dyed fuel because if a business uses it for on-road purposes, it will be avoiding taxes.

Rules for using dyed diesel fuel

If you are confused about using dyed fuel, you can research rules and regulations on government websites and consult with industry experts. By following these three rules, you can be sure you are using this diesel correctly.

Make sure you are allowed to use dyed diesel

Dyed diesel is tax exempt and may be used for limited purposes. Construction equipment, reefers, agricultural equipment, generators, and refrigerators can be powered by this diesel. You should not use dyed fuel for any unauthorized purpose, or you could be subject to extensive fines and back-taxes.

Fill out the required forms

There are three forms you need to fill out to be sure you are following Texas law. If you are a first-time user, you must fill out a registration form. The form asks for basic information about your business and contact information. Second, you will also be required to sign that you understand dyed fuel is for limited purposes. Finally, the third form is for companies who use more than 10,000 gallons of this fuel. If you use more than this, you will become a bonded user.

Buy dyed diesel fuel from a trusted source

Texas law has specific requirements for companies who sell dyed fuel. For example, it must use a specific type of dye and it must be injected in a particular manner. You don’t want one of your vehicles to get tested and fail because your supplier didn’t mix their product properly. Additionally, it is illegal to tamper with dyed diesel fuel. Again, if your company is caught with tampered fuel, even if it isn’t your fault, you could be held responsible. Accordingly, you should only purchase fuel from a company that you can trust.

Looking for high-quality dyed diesel from a reliable fuel supplier?

If you would like to purchase dyed diesel or other fuel products, contact the experts at Kendrick Oil today. We offer a wide variety of bulk fuel products and related services in Texas, Kansas, New Mexico, Oklahoma, Colorado, and Louisiana. Call us at (800) 299-3991 or Contact Us by email to learn more about What We Offer and how we can help you.