---
title: "New Diesel Order Could Let Drivers Use Red-Dyed Fuel. Here’s What to Know"
url: "https://camperfaqs.com/new-diesel-order-could-let-drivers-use-red-dyed-fuel"
author: "Tory Jon"
published: "2026-10-06T09:44:28-05:00"
modified: "2026-10-06T10:00:07-05:00"
---

# New Diesel Order Could Let Drivers Use Red-Dyed Fuel. Here’s What to Know

A new executive order could let diesel RV and tow vehicle owners use fuel normally reserved for off-road equipment. Potential savings will depend on federal implementation, state rules, and finding a seller.

 

According to the [White House’s October 5 announcement](https://www.whitehouse.gov/fact-sheets/2026/10/fact-sheet-president-donald-j-trump-promotes-diesel-affordability/), President Donald Trump signed an order intended to temporarily allow highway use of red-dyed diesel and defer the applicable federal excise tax for qualifying use through the end of 2026.

 

## What Is Red-Dyed Diesel?

 

Red-dyed diesel is diesel fuel marked with red dye to identify it for uses that receive different tax treatment.

 

The [U.S. Energy Information Administration explains](https://www.eia.gov/tools/faqs/faq.php?id=14&t=0) that off-road diesel supplies equipment used on farms, construction sites, railways, and for electricity generation. It generally avoids the federal and state excise taxes charged on highway diesel. The dye distinguishes it from fuel sold for road vehicles.

 

Diesel sold for farm and construction equipment already falls under federal ultra-low sulfur requirements, according to the [Environmental Protection Agency](https://www.epa.gov/diesel-fuel-standards/diesel-fuel-standards-and-rulemakings). Its off-road designation concerns tax treatment, rather than a separate sulfur standard for those uses.

 

Under ordinary federal rules, knowingly using dyed diesel for an unauthorized taxable purpose carries a penalty of $1,000 or $10 per gallon involved, whichever is greater, plus the applicable tax, according to [IRS Publication 510](https://www.irs.gov/publications/p510).

 

## What the New Order Changes

 

The [executive order](https://www.whitehouse.gov/presidential-actions/2026/10/emergency-tax-relief-on-diesel-fuel/) gives Treasury five days to direct the IRS to announce relief from specified penalties for selling or using dyed diesel on highways during October 5 through December 31, 2026.

 

It also directs Treasury to determine its legal authority to postpone certain fuel taxes and identify qualifying taxpayers. Any authorized deferral would carry no interest or penalties.

 

The deferred taxes could still become payable later. The order directs officials to consider legislation or other ways to eliminate those tax bills. Treasury must issue guidance explaining eligibility, conditions, and payment deadlines.

 

Although the administration emphasizes farmers and truckers, the order’s highway-use penalty provision is not expressly limited to commercial vehicles. RV owners could benefit, subject to Treasury’s implementation guidance and applicable state restrictions.

 

## State Rules Still Apply

 

The order encourages states to adopt similar relief. State fuel taxes and restrictions on highway use of dyed diesel require separate state action.

 

For RV owners, that raises a practical question: Does the relief in the state where they plan to drive cover an RV or personal tow vehicle? Drivers crossing state lines may encounter different restrictions and expiration dates along the route.

 

## How Much Could RV Owners Save?

 

The [EIA lists the federal tax on highway diesel](https://www.eia.gov/tools/faqs/faq.php?id=10&t=5) at 24.4 cents per gallon, including a 0.1-cent underground storage tank fee. Under IRS rules, dyed diesel generally remains subject to that small fee.

 

If the remaining 24.3-cent excise tax were ultimately forgiven and the full difference were reflected in the purchase price, the federal tax savings would be:

 
- **40 gallons:** $9.72
- **100 gallons:** $24.30

 

State tax relief could add to the savings, although sales taxes or other charges may offset part of the difference. Actual savings will depend on the seller’s price and the final tax treatment.

 

## Will Gas Stations Sell It?

 

Finding the fuel could be another obstacle. [GasBuddy’s Patrick De Haan notes](https://gaspriceguy.substack.com/p/the-dyed-diesel-waiver-has-catches) that dyed diesel generally reaches customers through suppliers and wholesalers, not local gas stations. Its distribution network is smaller than the network serving highway diesel customers.

 

RV owners interested in using it should call the seller ahead of time to confirm availability and ask about sales for highway use under the temporary relief. State eligibility needs a separate check.

 

As of October 6, we had not located new IRS or Treasury guidance clarifying the federal eligibility and payment details.