If you own a construction company or use farm equipment, you may be paying too much for your diesel fuel. Red dye diesel fuel has the same chemical composition as diesel #2, but red pigment has been added. Red diesel fuel costs less because it can be used for any diesel engine powered vehicle that does not drive on the roadways, and is therefore exempt from state road tax. In California, for example, red dyed diesel fuel is about .40 to .50 less per gallon than diesel #2 due to the absence of the state road tax. Here's a closer look at the types of off-road vehicles that use red diesel and the businesses that could benefit most from switching to red dye diesel.
Construction companies rely upon diesel fuel to power their backhoes, cranes, bulldozers, Bobcats and even for their diesel generators. Moving large objects like loads of rebar, soil, and steel beams are no match for large pieces of equipment like these. However, with off road construction vehicles like these, the gas is burned in large amounts. According to the Nebraska Test Laboratory Web site, construction vehicles vary widely in their gallons used per hour depending upon the size of the vehicle.
With the smallest bulldozers using just under 4 Gal/hr and the largest devouring 18 Gal/hr, a day's work can cost thousands of dollars in fuel costs! For just one large construction vehicle operating 9 hours per day at 18 Gal/hr (at $3.00 per gallon), the cost for diesel #2 would be $486.00 per day. If red dye diesel were used instead, the cost would only be $396.90 for the 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 financially benefit from using red dye diesel fuel. Farm equipment including tractors, bulldozers, harvesters, Bobcats, and diesel powered generators can all use red diesel instead of diesel #2. The Nebraska Test Laboratory states that a new John Deere 9230 tractor uses about 11.5 Gal/hr on average. For multiple tractors and farm equipment running their diesel engine from sun up to sun down, the savings can add up significantly each day! At $3.00 per gallon for diesel #2 versus $2.45 per gallon for red dyed diesel, a 10 hour workday can cost $63.25 less per vehicle!
Though some people use red dye fuel in their diesel engines on state roadways, it is illegal to do so. The California Highway Patrol has paper dipsticks to test for the presence of red dye in consumer vehicles and will fine the driver heavily if the stick comes out of the tank with the classic red hue. Off road farm equipment and construction vehicles can all use this less expensive fuel and business owners can begin saving money immediately. In this poor economy, saving money is more important than ever. Other businesses that can benefit from using this fuel instead are traveling shows that use diesel generators such as road shows, carnivals, and fairs. Start saving money today by switching to red dye diesel!