Last updated: October 7, 2026
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Here’s the short answer: a recent federal executive order allows trucking companies to use red-dyed diesel on the road through December 31, 2026. But the “reefer” option at most truck stops is not dyed diesel, true dyed diesel is hard to find, and not every state has updated its laws to match. Before making any changes, it’s worth understanding what’s actually available and where you’re running.
There’s a lot of confusion out there about this order. We put together the facts so you and your drivers can make the right call.
Same fuel. Same card. Straight answers.
Key Takeaways
- What changed: a federal executive order allows on-road use of red-dyed diesel through December 31, 2026
- The big misconception: reefer fuel is considered off-road diesel, but it’s not typically dyed red when purchased at the pump at most major truck stops. The executive order only applies to red-dyed diesel
- Why it matters: red-dyed diesel is exempt from federal and most state fuel taxes. However, state laws can still restrict how red-dyed diesel is used, and you may be subject to fines and penalties at the state or local level even though the federal rule has changed
- Where dyed diesel is sold: some rural truck stops that serve agricultural regions, and local co-op stations
- Before you switch: dyed diesel availability is limited and tax rules vary by state
What Is Red-Dyed Diesel?
Red-dyed diesel is diesel fuel that’s exempt from federal and most state fuel taxes because it’s meant for off-road use, like farm equipment, construction machinery, generators, and the refrigeration units used in reefer trucking. A red dye is added so it can be told apart from taxed on-road diesel during inspections.
Regular on-road diesel carries a federal excise tax of 24.4¢ per gallon, plus state fuel taxes that vary by state. That tax difference is why the new executive order got so much attention from truckers.
What Does the Dyed Diesel Executive Order Allow?
The executive order allows trucking companies to use red-dyed diesel in on-road vehicles through December 31, 2026. On paper, that sounds like an easy way to save on fuel taxes.
In practice, three things make it more complicated:
- True dyed diesel is hard to find at the truck stops most carriers use every day.
- The fuel many drivers think is dyed diesel, the reefer option at the pump, actually isn’t.
- Not every state has updated its laws to support the executive order.
Which States Support the Executive Order?
As of October 7, 2026, these states have issued new guidelines supporting the executive order:
- Alabama
- Louisiana
- Nebraska
- North Carolina
- Oklahoma
- Texas
If you buy red-dyed diesel in one of these states and burn those gallons within these states, you should have no issues from law enforcement. But if you run miles in a state that hasn’t changed its diesel laws, you could face fines or other penalties in that jurisdiction, even though the federal rule has changed.
Is Reefer Fuel the Same as Dyed Diesel?
No. Reefer fuel is considered off-road diesel, but at most major truck stops it isn’t dyed red. It usually comes from the same nozzle as your regular diesel, and it’s clear fuel. Selecting “reefer” only changes how the purchase is billed and reported, because that fuel is meant for your refrigeration unit, not your engine.
Every truck stop handles this differently. The reefer option might be a button, a lever, or a separate pump. Either way, the executive order only applies to red-dyed diesel, not clear reefer fuel.
| Reefer Fuel (at most truck stops) | Red-Dyed Diesel | Regular On-Road Diesel | |
|---|---|---|---|
| Color | Usually clear, not dyed red | Red | Clear |
| Type of fuel | Considered off-road diesel | Off-road diesel | On-road diesel |
| Where it comes from | Usually the same nozzle as regular diesel at major truck stops | Some rural truck stops in agricultural regions and local co-op stations | The truck stop fuel island |
| Fuel taxes | Billed and reported as fuel for your reefer unit | Exempt from federal and most state fuel taxes | Includes federal and state fuel taxes |
| Covered by the executive order? | No | Yes, through December 31, 2026, but state laws vary | Not applicable |
| Meant for | Your refrigeration unit only | Off-road use, with on-road use allowed federally through December 31, 2026 | Your tractor engine |
Bottom line: choosing the reefer option does not turn regular diesel into dyed diesel.
Why the Reefer Option Matters for IFTA
If reefer billing is used for fuel that goes into your tractor, your fuel records won’t match how the fuel was actually used. That can create problems on your IFTA filings and in an audit, and the executive order doesn’t change that.
Accurate fuel records protect your business and support your overall trucking compliance, and they start with billing each purchase for how the fuel is actually used.
Where Is Red-Dyed Diesel Actually Sold?
True red-dyed diesel is usually found at some rural truck stops that serve agricultural regions and at local co-op stations. Most major interstate truck stops don’t carry it at the fuel island.
| Where You Fuel | Does It Usually Sell Red-Dyed Diesel? |
|---|---|
| Major interstate truck stops | Usually not at the fuel island, IF at all |
| Rural truck stops in agricultural regions | At some locations |
| Local co-op stations | At some locations |
What to Consider Before Using Dyed Diesel
Every trucking business is different, whether you’re one of the many owner-operators on the road or running a growing fleet. The right choice depends on your routes, the states you run through, and how you report fuel. Here are a few things to keep in mind.
Availability is limited.
Most major interstate truck stops don’t sell true dyed diesel at the fuel island, so it may not fit your regular fueling routes.
Reefer fuel isn’t covered.
The executive order only applies to red-dyed diesel. The reefer option is meant for fuel going into your refrigeration unit, not your engine. Make sure your drivers know the difference.
Your route matters.
Only some states have issued guidelines supporting the order so far. Running miles in a state that hasn’t updated its diesel laws could mean fines or other penalties.
What Hasn’t Changed: Your PorterFuel Card Savings
While the dyed diesel picture gets sorted out, your PorterFuel Card is still saving you money on every gallon.
- In-Network discounts have averaged 51¢ per gallon recently, on both diesel and reefer fuel
- In October, you also earn an extra 5¢ per gallon on every In-Network gallon, paid by November 10. See how the October fuel card rebate works.
If you find a location selling red-dyed diesel that accepts EFS fuel cards, you can use your PorterFuel Card there. We may need to adjust a limit or control on your card, so contact us if you run into any issues at the pump.
Frequently Asked Questions
This article is for general information only and is not tax or legal advice. State laws on dyed diesel are changing and vary by state. Information is current as of October 7, 2026.
Have Questions? Talk to a Real Person
Porter Freight Funding is a freight factoring and fuel card company based in Birmingham, Alabama. We help trucking companies lower fuel costs with the PorterFuel Card and keep cash flowing with same-day freight factoring.
When rules change, we’d rather give you straight answers than a sales pitch. Call your PorterFuel team at (256) 502-8200 or contact us online to talk with a real person in our Birmingham office.
