If you own a construction business or use farm equipment, you may be paying too much for your diesel fuel. Red dye diesel fuel has the same chemical composition as #2 diesel, but red pigment has been added. Red diesel fuel costs less because it can be used in any off-road diesel-powered vehicle and is therefore exempt from state road tax. In California, for example, red-tinted diesel fuel costs 0.40 to 0.50 less per gallon than #2 diesel due to the absence of state road tax. Here’s a closer look at the types of off-road vehicles that use red diesels and the companies that could benefit most from switching to red-tinted diesels.

Construction companies rely on diesel fuel to run their backhoes, cranes, bulldozers, Bobcats, and even their diesel generators. Moving large objects like loads of rebar, earth, and steel beams is no match for big rigs like these. However, with off-road construction vehicles like these, the gas burns in large quantities. According to the Nebraska Testing Laboratory website, construction vehicles vary widely in gallons used per hour depending on the size of the vehicle.

With the smallest excavators using just under 4 gal/hr and the largest gobbling up 18 gal/hr, a day’s work can cost thousands of dollars in fuel costs! For a single large construction vehicle operating 9 hours per day at 18 gal/hr (at $3.00 per gallon), the cost of #2 diesel would be $486.00 per day. If red dye diesel was used instead, the cost would be only $396.90 per day at $2.45 per gallon! Savings: $89.10 per vehicle, per day. With multiple construction vehicles in operation, a construction company can save thousands of dollars every day in diesel fuel costs.

Farmers are another type of business that can benefit financially from the use of red dye diesel fuel. Farm equipment, including tractors, bulldozers, combines, Bobcats, and diesel generators, can use red diesel instead of #2 diesel. The Nebraska Testing Laboratory states that a new John Deere 9230 tractor uses about 11.5 Gal/hr on average. For multiple tractors and farm equipment running on their diesel engine from dawn to dusk, the savings can add up significantly each day! At $3.00 per gallon for #2 diesel versus $2.45 per gallon for red-tinted diesel, a 10-hour workday can cost $63.25 less per vehicle!

Although some people use red-tinted fuel in their diesel engines on state highways, it is illegal to do so. The California Highway Patrol has paper test strips to detect the presence of red dye in consumer vehicles and will heavily ticket the driver if the strip comes out of the tank with the classic red tint. Off-road farm equipment and construction vehicles can use this less expensive fuel, and business owners can start saving money right away. In this poor economy, saving money is more important than ever. Other businesses that can benefit from the use of this fuel are traveling shows that use diesel generators, such as traveling shows, carnivals and fairs. Start saving money today by switching to red tint diesel!