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The president announced this week that he would allow so-called red dye diesel – fuel which is used off-road and does not face federal taxes – to be used on US highways without facing federal levies.<\/p>\n
Ruisard said the only difference in the diesel used by truck drivers and everyday consumers and the tax-free red dye diesel is the dye itself.<\/p>\n
“The problem with that red dye is, it’s extremely hard to clean it out of your tank,” he explained.<\/p>\n
The problem that creates is what happens to trucking companies that use the dyed diesel once the temporary tax relief ends, he said. <\/p>\n
“The fines are pretty high for having that in your fuel tank because its considered tax evasion.”<\/p>\n
The other issue with expanding the use of red dye diesel, according to Ruisard, is that people and businesses – including rail operators – usually set aside a particular amount of the product.<\/p>\n
“If suddenly people go out and they start consuming that diesel, that depletes their available supply as well,” he said.<\/p>\n
But another move from Trump has been more successful, according to analysts.<\/p>\n