Yes, Texas Gov. Greg Abbott has temporarily allowed red diesel to be used on public roads. But before you put it in your diesel pickup or motorhome, there are three things to understand: Texas still expects its fuel tax to be paid, your engine still needs the correct type of diesel, and this permission is temporary. The announcement gives drivers another possible source of fuel, but it does not mean every diesel owner can simply fill up tax-free.
First, what is red diesel? It is diesel fuel with red dye added to identify it as fuel normally sold for uses that do not require highway fuel taxes. Farmers use it in tractors and combines, and construction companies use it in equipment operating off public roads. The red color helps officials identify the fuel during inspections. It is not a new invention or a special fuel that gives your truck more power. The dye identifies how the fuel is taxed; it does not tell you whether that fuel is right for your engine.
Normally, putting this untaxed fuel in a vehicle driven on public roads can bring penalties. Abbott’s Sept. 28 disaster proclamation temporarily suspends those Texas restrictions and the associated penalties. According to the governor’s office, the purpose is to make more diesel available during a period of high prices and supply problems, helping farmers, truckers and others keep moving.
Here is the catch: Abbott did not cancel the Texas diesel tax. The Texas Comptroller says the state’s 20-cent-per-gallon tax still applies when red diesel is used on highways. For example, if you buy 30 gallons for highway driving, the state tax is $6. If that tax was not collected when you bought the fuel, it still has to be accounted for. As of Oct. 8, the Comptroller was still working out payment instructions. Keep your receipts and records of how many gallons you purchase, and check the agency’s current guidance.
There is a separate federal action, too. President Donald Trump signed an order Oct. 5 directing federal officials to provide temporary relief involving red diesel used on highways through Dec. 31. However, the actual order calls for delaying certain tax payments, subject to legal requirements, and providing penalty relief. It does not simply erase the federal tax bill. Federal officials must spell out the details, so drivers should not assume the tax has disappeared.
Now, the question diesel owners will understandably ask: Will red diesel hurt my engine? The color alone does not answer that. What matters is whether the fuel meets your vehicle’s requirements. Modern diesels need ultra-low-sulfur diesel, usually labeled ULSD. Before buying red diesel, ask the supplier whether it is ULSD and meets the requirements in your owner’s manual. Ford warns that using higher-sulfur fuel in an engine requiring ULSD can damage its emissions equipment.
Adding to the confusion, the Environmental Protection Agency has separately allowed certain older diesel engines in Texas to use higher-sulfur fuel temporarily, through Oct. 24. That exception does not give modern diesel owners permission to use it. Your newer truck still needs the fuel specified by its manufacturer, regardless of what an emergency order allows older equipment to burn.
For the average diesel driver, my advice is straightforward: You can continue buying your usual highway diesel. If you want to buy red diesel, first confirm the supplier can sell it to you, that it meets your engine’s requirements, and how the applicable taxes will be handled. Check other states’ rules before traveling outside Texas, too. This is temporary permission to use another fuel supply, not a promise of tax-free driving or permission to put the wrong fuel in your tank.
Photo: Virrage Images/Shutterstock.com.