Information

It is illegal to place dyed diesel fuel in the fuel supply tank of the propulsion engine of a licensed (or subject to be licensed) vehicle!

The Internal Revenue Service enacted a program of placing red dye into diesel fuel, to identify fuel on which Federal excise taxes have not been paid. The State of Delaware recognized the non-taxable designation of the red dyed diesel fuel by enacting dyed diesel fuel law (Title 30 Delaware Code, Chapter 51, Subchapter II, Section 5140). As a result, transactions involving the sale and/or purchase of Special Fuel containing evidence of red dye are generally exempt from the State of Delaware Special Fuel excise tax. Since the red dyed fuel does not contain Federal or State excise taxes, it cannot be placed into the fuel supply tank of the propulsion engine of a licensed (or subject to be licensed) vehicle.

Federal and State Diesel Compliance Officers are authorized to perform routine inspections of the fuel used in licensed (or subject to be licensed) vehicles in Delaware, with the assistance of the Delaware State Police. When it is conclusively proven that untaxed dyed fuel was placed into a licensed (or subject to be licensed) vehicle, the operator of the vehicle shall be fined not more than $1,000, imprisoned for not more than 90 days, or both, for the first offense. For a second and any subsequent offense, the operator of the vehicle shall be fined not more than $2,000, imprisoned for not more than 6 months, or both. The IRS imposes penalties in a similar manner.

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Please contact Transportation Services at 302.744.2715 for more Dyed Diesel Fuel information