Off-road diesel is also known as dyed diesel, ultra-low sulfur diesel, and farm diesel. It is intended for vehicles, machinery, and equipment that don’t typically operate on public roads, such as those in the construction and agricultural industries. It is not taxed, so it tends to be cheaper than on-road (clear) diesel. It’s also illegal to use in on-road vehicles, like consumer cars.
Why is it Red?
Because off-road diesel is state and federally tax-exempt, it is dyed red so it is distinguishable from on-road (clear) diesel. It makes it easier for governing bodies to identify it for tax-purposes.
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What Are Some of the Top Industries That Use Off-Road Diesel?