Another trucking organization has come out against President Donald Trump's executive order to allow the on-highway use of red-dyed diesel, which is normally only allowed to be used by agriculture, construction and other of-road vehicles.
The Mid-West Truckers Association Tuesday posted on Facebook its recommendation that trucking companies not use red-dyed diesel. It urges truckers to wait and see if Illinois issues a waiver of its own regarding red-dyed diesel, and said Trump's executive order does not make clear how the deferred 24.4 cents per gallon federal tax will be collected when the federal waiver expires Dec. 31.
Also on Tuesday, the Owner-Operator Independent Drivers Association issued a statement that criticized oil company profits and said "allowing the wider use of red-dyed diesel will provide minimal relief. Market stability is essential to bring down costs for the long haul.”
The groups' apprehension over the red-dyed diesel executive order comes as AAA today reports the national average for on-highway diesel is $6.30 per gallon, down by a penny from Tuesday.
The MTA's Facebook post said:
Executive Order Allowing Use of Off-Road Diesel Fuel Only Postpones Federal Road Tax LiabilityIllinois Still Hasn't taken Any Action on Off-Road fuel to be on-road.
MTA recommends that companies do not use off-road dyed diesel fuel in on-road trucks at this time.
Last night, President Trump announced an executive order permitting the use of off-road diesel fuel in on-road vehicles.
However, the order appears only to delay penalties for failing to file before January 1 for off-road fuel that is used on-road. It does not eliminate the underlying federal motor fuel tax liability. Congressional action would still be required to eliminate or waive the tax itself.
Under the executive order, the federal motor fuel tax must still be accounted for and paid if off-road fuel is used for on-road purposes; payment is simply deferred until January 1.
In addition, Illinois must take separate action on its state motor fuel tax before dyed off-road diesel can legally be used in on-road vehicles in the state.
A further concern is how enforcement will be handled once the penalty delay or grace period expires. In particular, it remains unclear how the Illinois Department of Revenue will treat fines and penalties for trace amounts of dyed off-road fuel found in on-road truck fuel tanks after the grace period ends.
MTA Recommendation: Companies should not use off-road dyed diesel fuel in on-road trucks at this time. We advise waiting until Illinois issues a specific waiver or other authorization, and until there is greater clarity on the scope and enforcement after the ending of the President’s executive order.
