U.S. Allows Red-Dyed Diesel on Public Roads, but Canadian Ban and Fines Remain in Effect
U.S. President Donald Trump signed an executive order permitting the use of tax-free red-dyed diesel on public roads to ease fuel costs linked to the war on Iran. While Canadian farmers support similar relief, using dyed diesel on Canadian roads remains illegal, with provincial fines reaching up to $50,000 for corporations.
U.S. President Donald Trump has signed an executive order directing the secretaries of the Treasury, Transportation, and Agriculture to waive the off-road requirement for tax-free dyed diesel. The change allows American farmers to use bulk red-dyed diesel in trucks for road travel without facing penalties or taxes. High fuel prices in the United States resulting from the war on Iran prompted the executive order.
Using red-dyed diesel to fuel road and highway vehicles remains illegal in Canada. Canadian Federation of Agriculture president Keith Currie stated that allowing dyed diesel for road use would help stabilize extremely expensive diesel prices for farmers. However, provincial governments have raised concerns about the financial consequences of such a shift. Saskatchewan officials stated that expanding the Farm Fuel Program to allow all on-road uses of diesel would cut the highways budget and impact motorist safety.
Travelers can legally bring red-dyed diesel from the U.S. into Canada if it is transported in a container and properly declared at the border. Placing the fuel in a vehicle's tank for road use, however, risks seizure and fines.
Enforcement and penalties vary by province. In Ontario, motorists found with coloured fuel in their tanks face fines between $200 and $1,000 per offence under the Fuel Tax Act. In Saskatchewan, contravening the Fuel Tax and Road Use Charge Act carries a fine of up to $10,000 for individuals and $50,000 for corporations.