Newbie red diesel questions

[Haywire]

A couple newbie diesel questions.

Is the red farm diesel legal only for those with tax exempt farm status or can any tractor tank up with it?

How much cheaper is it than regular diesel with all the taxes added on?

Generally, where can it be purchased one 5 gallon can at a time? I don't need 250 gallons at a whack.

thanks,
Ian

 

[thatguy]

#1) see above

#2) here in VA the price difference should be approx $0.42 (Fed tax ~ $0.244, state tax is $0.175) - I think KY tax is similar to VA's... Honestly most places its very close in price.. IF it is close, a lot of states allow you to apply for a refund of the state tax.. I have heard you can also apply for a refund on the Fed tax as well, but dont know the specifics

#3) check with the local farmers coop/southern states/and the locally owned stations..

Brian

 

[Haywire]

Ok, if it's less than 50c, probably not worth messing with.

thanks,
Ian

 

[Dan W]

Interestingly, pricing here in the province of Ontario runs 10 cents less per liter for farm fuel, 4 liters in one US gallon = 40 cents cheaper per gallon. Looks like Ontario imposes same road tax as most states. Farm fuel is exactly the same fuel as used on highway; they simply add a coloring agent. There is a difference up here, you do not want to get caught running farm fuel in your recreational tractor (for hobby farm enthusiasts), fines apply we need a farm certificate.
Dan

 

[Ductape]

Around here there are only a couple places that pump off road diesel, and its only 5 to 10 cents per gallon less than on road. In fact, when on road is on the downward slide (not very often, unfortunately) off road can actually be MORE expensive. The only way to save much is to have it delivered, and that requires a delivery minimum of 125 gallons. The oil co. will also want to inspect and approve of your fuel tank / pump set-up because they are afraid of liability if you spring a leak. Having it delivered usually nets about a forty cent a gallon savings here.

 

[melonhawg]

Check out your local Farm store. The one near me sells diesel, I've got 5gal and then later I filled up my 55gal barrel.

For a while the price of red cost the same if not more than green. Now it's about .05 cent less.

 

[tom4018]

Ok, if it's less than 50c, probably not worth messing with.

thanks,
Ian

IT won't save you that much, you got to have a permit to get the state taxes off which the state has to approve otherwise all you save is road taxes.

 

[johnrex62]

If you are a heavy user it might be worthwhile. I got my permit, but use less than 50 gallons per year. I don't want to store 3-4 years worth of fuel to save 15-20 cents per gallon.

I can find the road use diesel today for $2.69 and I can pay $2.62 for the red at the closest dealer. On top of that I have to drive the 30 miles to their distribution center while the discount retailer is only 4 miles away.