President Donald Trump and state governors moved to lower the cost of diesel and goods by expanding the use of red diesel; however, California's rules on the fuel are different.
If you're wondering how red diesel will benefit you, here's what you should know about the proposals and where to purchase the fuel.
Will it affect California drivers and fuel prices?
What is dyed or red diesel?
Red diesel, or off-road diesel, is typically used by trucks and tractors that are exempt from federal highway taxes. That means users of red diesel cannot drive on federal highways.
It's dyed to help inspectors quickly identify fuel bought without paying the highway fuel excise tax.
Trump's new executive order temporarily expands access to tax-free diesel fuel. On the state level, California
does not charge state or federal excise taxes on red dye, and California officials had not confirmed whether the order would apply in the state as of Oct. 13.
How much cheaper is red diesel?
The federal excise tax on diesel fuel is 24.3 cents per gallon, according to the U.S. Energy Information Administration. California's state taxes on diesel are 48.2 cents as of July 1, according to the California Department of Tax and Fee Administration.
Dyed diesel is exempt from state and federal excise tax in California.
Can I put red diesel in my truck or car?
The average person probably can't take advantage of red diesel, given that diesel is meant for heavy-duty vehicles.
Though it is crucial for trucking and agriculture, experts said the move will have limited results in reducing high fuel costs. Trump argued the order would save truckers an average of $100 per fill-up and save farmers millions of dollars.
But Patrick De Haan, head of petroleum analysis at the price-tracking website GasBuddy, said action on dyed diesel could help reduce prices for truckers but would do little for farmers.
"Taxes aren't the problem, supply is," De Haan said on X on Sept. 28.
Where can I find red diesel?
You won't find red diesel at many conventional gas stations or truck stops in California. You mainly buy it at a Commercial Fueling Network, or CFN.
P.Fleet, a fuel card company that specializes in selling to trucking and fleet-driven companies, listed 216 CFN locations in the state. Their site also includes a map showing those locations.
Des Moines Register reporter Marissa Payne contributed to this article.
Lucia Cheng is a service and trending reporter at the Des Moines Register. Contact her at lcheng@gannett.com or 515-284-8132.
Ernesto Centeno Araujo covers breaking news for the Ventura County Star. He can be reached at ecentenoaraujo@vcstar.com, 805-437-0224 or @ecentenoaraujo on Instagram and X.
This article originally appeared on Palm Springs Desert Sun: Can Californians use red diesel to save money? What is red diesel?
