Everybody's asking the same thing at the pump and on location. Can I run red diesel in my truck or not.

As of Oct 17, the federal penalty is off through Dec 31. State rules depend on where you're standing, and the federal tax bill hasn't gone away.

What The Feds Did

The Board

The Catch

Nobody has forgiven the 24.4 cent federal diesel tax. Guidance on postponing it is still coming, and the IRS says it will "explore avenues to eliminate" what's deferred. A deferral only pushes the bill back, so plan on owing it unless it gets cancelled.

Per the IRS, the one who owes it is generally the seller at a retail pump, or "the operator of the motor vehicle" when red comes out of a bulk tank.

The IRS also says this relief has no effect on state fuel taxes and penalties.

Where Your State Stands

The Math

Federal tax on a 30 gallon pickup fill runs about $7.30. On a 250 gallon semi fill it's about $61. Red doesn't have it built into the price, and you only keep that money if the tax never comes due.

North Dakota taxes red at 4 cents a gallon vs 23 on clear, so a 250 gallon fill in an ND ag truck runs about $108 less up front.

Truckers

The bigger problem is finding it. GasBuddy's Patrick De Haan says "most major truck stops don't sell dyed diesel."

IFTA executive director Carmen Martorana told Land Line on Oct 6 that carriers "will have to pay the state taxes on the IFTA return." That holds anywhere the state hasn't waived its own tax.

On engines, Land Line's Tom Berg says there's no chemical difference between red and clear, low sulfur included, and it won't harm aftertreatment.

The Tank On Location

Your outfit's fuel policy still decides who fills from the red tank on location. The IRS stepping back doesn't change that.

Where It Goes From Here

Next to watch is the IRS guidance on the deferred tax. Cancelling it outright could take Congress, and the order itself names legislation as an option.

Who's Hiring

The current board is the one to check.

Field Report

Drop your basin and your state. Tell us what diesel costs at your pump today, whether you'd put red in anything with plates, and whether you've seen anybody get checked for dye since Oct 1.