The special fuel has the same exact chemical composition as diesel fuel, but it’s dyed red to denote its tax-exempt status and is typically meant only for off-road farming equipment like tractors.
asserted
it → have → tractors
Long-haul drivers could save a substantial amount of money using the cheaper fuel, potentially passing those savings along to groceries – but there are several roadblocks standing in the way.
uncertain
drivers → save → way
Patrick De Haan, head of petroleum analysis at GasBuddy, estimated that few truckers – perhaps just one in 100 – will actually be able to take advantage of the tax-exempt fuel because it’s not usually available at gas stations.
asserted
it → estimate → stations
“The problem, first of all, is that dyed diesel is a specialty product.
asserted
diesel → dye → all
Generally it appears in rural areas where there are many farmers, not at gas stations,” De Haan told The Post.
asserted
Haan → appear → Post
Off-road diesel can be found around the country, but fill-up locations are spread out and rarely found near cities, according to a map by C NRG Fleet, a fueling management company.
uncertain
locations → find → Fleet
The closest location to New York City, for example, is in North Bergen, New Jersey, and there’s not a single red-dye stop on Long Island.
asserted
location → ’ → Island
“Also, most consumers don’t know that the red-dye diesel is exactly the same as ultra-low sulfur diesel with an added dye.
asserted
diesel → know → dye
So adoption becomes more challenging,” Ramanan Krishnamoorti, vice president for energy and innovation at the University of Houston, told The Post.
asserted
Krishnamoorti → become → Post
During a rally Monday night, Trump signed an executive order allowing drivers to use the tax-exempt dye, claiming the average trucker “will save over $100 every time they fill up” and farmers “will also save millions and millions of dollars.”
asserted
farmers → sign → dollars
He argued the tax waiver “will also drive down the cost of all goods, including grocery prices, very substantially.”
asserted
waiver → argue → prices
The vast majority of consumer goods in the US are transported via heavy trucks that run on diesel, so higher diesel costs can easily bleed through to the grocery store.
asserted
costs → transport → store
National average diesel prices hit $6.32 a gallon on Tuesday – up 71% from $3.68 a year ago, according to AAA.
uncertain
prices → hit → AAA
In some states, customers could soon see an up to 60 cent price reduction on diesel as a result of the executive order, according to De Haan – but it could vary greatly state-by-state.
uncertain
it → see → state
The rollout “all depends on how fast this gets adapted,” said Krishnamoorti, adding he anticipates “a whole bunch of states interjecting and indicating federal overreach.”
asserted
bunch → depend → overreach
Executive orders do not automatically trump state laws, so state officials will still have control over whether or not they decide to waive taxes on diesel fuel.
asserted
they → trump → fuel
Tax rates on red-dye diesel also vary across states.
asserted
rates → vary → states
Since the tax status could vary across state lines, that means hauling companies – whose drivers frequently travel cross-country to deliver goods – won’t be inclined to purchase the red-dye diesel, since they’d be risking penalties in areas that don’t waive the taxes.
uncertain
that → vary → taxes
If Congress approved a nationwide suspension of the diesel tax, it would lead to average savings of 24.4 cents a gallon in every state, De Haan said, but this proposal hasn’t been floated by policymakers.
asserted
proposal → approve → policymakers
“Truckers who don’t cross a state line may be able to use this.
uncertain
who → cross → this
Farmers and construction companies are already using dyed diesel,” De Haan told The Post.
asserted
Haan → use → Post
Another concern is the language used in the executive order, which authorizes highway use of the tax-free dyed diesel – but says it is “deferring the federal diesel excise tax through the end of the year,” per a White House announcement.
asserted
it → use → announcement
The question is whether those diesel taxes will be fully canceled at the end of the year, or if customers will be slapped with a bill down the road.
asserted
customers → cancel → road
Drivers may also be unwilling to purchase the red-dyed diesel since it could leave a residual color behind in their gas tank.
uncertain
it → purchase → tank
Once the temporary waiver is lifted, truckers who previously used the red-dye diesel could risk getting pulled over by officers who spy leftover red-tinted emissions from the exhaust tailpipe.
uncertain
who → lift → tailpipe
The Aporia
