Oil & Fuel Bush says off-road diesel ok for on-road use?

[cart99]

see article

The Treasury Department Has Waived Regulatory Rules For Dyed Diesel Fuel. The Internal Revenue Service (IRS) announced that it would allow use of "dyed diesel fuel" for on-road use without a tax penalty, increasing diesel supplies. Dyed diesel fuel ordinarily is not subject to Federal excise taxes because it is intended for off-road use in farm equipment or in certain government vehicles such as school buses. The IRS announced that it would not penalize those who used dyed diesel fuel for on-road use, and this waiver has been extended following Hurricane Rita.

 

[hobbyfarm]

Hmmmm,
does that mean that off-road fuel will be subject to the on-road tax?? /forums/images/graemlins/confused.gif /forums/images/graemlins/confused.gif i.e. tax it all! /forums/images/graemlins/crazy.gif

 

[hobbyfarm]

I can't help but be skeptical.
When you squeeze a balloon in your hands, it pops out somewhere else. /forums/images/graemlins/mad.gif Can't imagine the gov't would just give up on the revenue.

 

[slowrev]

There is X amount of diesel our there, whether off road or on road, so it makes little difference. The exception is the areas where there is high sulfur off road available.

To me this will make less fuel avail for farmers and such, It will allow their supply to be burned on road.

Ben

 

[Bob_Skurka]

</font><font color="blue" class="small">( I can't help but be skeptical.
When you squeeze a balloon in your hands, it pops out somewhere else. /forums/images/graemlins/mad.gif Can't imagine the gov't would just give up on the revenue. )</font>


This is a temporary solution to help prevent huge spikes in diesel fuel prices which would lead to higher transportation costs and the associated inflation of food, clothes, etc. At the same time they did this, they also relaxed the botique fuels that various cities require. It is all due to Hurricane Katrina. Both will very likely be revoked within 45 to 60 days. Both helped to prevent $4+/gallon pump prices.

 

[RedRocker]

I'm sure they'll add the tax. /forums/images/graemlins/frown.gif

 

[Bob_Skurka]

The way I understand through our trucking industry newsletters is that they will simply go back to the other way at some point. So off-road diesel will simply be made illegal for on-road use after some specified date.

This was simply a stopgap to make sure that there was no artificial shortage created by governement regulation that would add to the spiking price of fuel.

 

[Farmwithjunk]

I just stopped this morning to fill my transfer tank (in the truck bed) with off-road diesel for the farm. I buy a couple hundred gallons at a time that way. I get it at a fueling station where NORMALLY I pay $.18 to $.22 a gallon less for off-road than regular "on-road" sells for. This morning, there was $.05 difference.

The $10.00 I saved was countered by the approx. $15 worth of fuel I used to get to and from the station.

Even with my poor math skills, that isn't good . /forums/images/graemlins/shocked.gif /forums/images/graemlins/mad.gif /forums/images/graemlins/ooo.gif

 

[Iplayfarmer]

Supply and Demand.

This will increase the demand for off-road diesel, and, therefore, increase the price. It will bring the prices of the two closer together. The on-road stuff will not go as high as it would have otherwise, but the off-road stuff will go higher than it would have otherwise.

I agree with the other posters that have said in short time the dyed diesel will again be banned from use on-road and the fines, etc. will again be in force.

 

[hobbyfarm]

</font><font color="blue" class="small">( Even with my poor math skills, that isn't good . /forums/images/graemlins/shocked.gif /forums/images/graemlins/mad.gif /forums/images/graemlins/ooo.gif )</font>

Maybe the gov't is using them poor math skills themselves! /forums/images/graemlins/confused.gif /forums/images/graemlins/grin.gif