Industry leaders warn red-dye diesel relief could cost drivers more in taxes later

Fuel and transportation industry leaders are warning truck stops and drivers that buying red-dyed diesel now to save money could cost them more in taxes later, according to CDLLife on Oct. 7 — a cold-water response to the executive order temporarily promoting dyed diesel for on-highway use.

The Energy Marketers of America said "whether relief is available, whom it covers, and on what conditions depend on Treasury determinations and guidance not yet issued" — and added the line drivers should memorize: "Deferral is not forgiveness."

The Society of Independent Gasoline Marketers of America and the National Association of Truck Stop Owners told members they do not expect most reputable diesel retailers and fuel marketers to sell dyed fuel for highway use. "First, the tax is still owed, so there's limited upside," the groups wrote, adding that residual dye lingers in tanks and fuel systems and that "the liability and customer risk outweigh any temporary, uncertain benefit."

OOIDA president Todd Spencer said allowing wider use of red-dyed diesel "will provide minimal relief," arguing that only long-term market stability will truly bring costs down for truckers. The order instructs Treasury Secretary Scott Bessent to defer certain diesel fuel tax payment obligations and provide penalty relief — but until Treasury issues guidance, drivers pumping red fuel are betting on paperwork that does not exist yet.