Home » Why Consumers May Soon Be Able To Buy Cheaper Red-Dyed Diesel

Why Consumers May Soon Be Able To Buy Cheaper Red-Dyed Diesel

Red Dyed Diesel

There are a lot of plans to lower fuel costs, though it’s not clear if most of them will either lower fuel costs immediately or at all. There is one surefire way to make diesel costs cheaper, and the savings are basically instantaneous, though the move is not without its costs.

Energy prices still dominate all talk of cars at the moment, and The Morning Dump unfortunately runs on a server powered by a Jetta Sportwagen TDI. Perhaps red-dyed diesel will save us all from insolvency. One might assume owning any Stellantis dealer would result in business troubles given the shakiness of the operation over the last few years, but in Q2 they were the most purchased dealerships.

Vidframe Min Top
Vidframe Min Bottom

Japanese automakers are shifting more production to the United States to deal with tariffs. Will Europe be next? And while we’re in Europe, let’s check out the preview of the new Alpine A110.

Get Ready To Put Some Red #26 In Your Car

Processed With Darkroom
Photo: Tyler Moore

Record high diesel and elevated gasoline prices in an even-numbered year have encouraged government leaders to consider a number of options. Right at the top, there’s been talk of a diesel export ban, though so far the negative consequences seem to have outnumbered the short-term fuel savings.

What’s a government to do? In Texas, where Republican Governor Greg Abbott is facing a surprisingly strong challenge from Democratic state rep Gina Hinojosa, the state has enacted a 30-day disaster declaration, as the Texas Tribune reports:

The declaration expands the use of dyed diesel on Texas roads, suspends Texas Low Emission Diesel rules to the limit the federal government authorizes and raises the allowable weight for fuel, agricultural and timber loads. The governor also requested the U.S. Environmental Protection Agency to waive federal ultra-low sulfur diesel requirements to boost supply.

“Texas agriculture and freight run on diesel,” Abbott wrote in a statement. “Record prices put both industries at risk and raise costs for every Texas family. Farmers and truckers can now use dyed diesel on Texas roads, and fuel, crop, and timber loads can move at a higher weight. These steps cut costs on the farm, on the road and at the store.”

So what is red-dyed diesel? Is it going to cause an allergic reaction in your tractor? Not quite. Dyed diesel is just the regular, clear-ish diesel you normally use but it’s been dyed red with Solvent Red #26. Why? Governments at the state and federal level tax fuels in order to pay for things like highways, but not all fuel is used for on-road uses. Depending on where you live, red-dyed diesel can be used for agriculture or other off-road use. The red dye is just there to make sure you’re not caught putting off-road diesel into an on-road vehicle.

There’s been talk of doing this at a federal level, though Bloomberg correctly points out this is only a partial fix for high prices:

The federal tax on diesel is about 24 cents a gallon with state taxes adding, on average, another 36 cents, according to the US Energy Information Administration. Removing restrictions on sales of off-road diesel could lower prices for farmers to back under $6 a gallon, a meaningful reduction, but still well short of sub-$4 a gallon diesel seen before the US and Israel launched the war in Iran.

This is a short-term fix with its own long-term problems as people will still be using roads and it could create a shortfall in funding for transportation projects. The most obvious fix to this whole mess is to end the war in Iran, though that keeps not happening.

Chrysler Dodge Jeep Ram Dealers Are Suddenly Popular, As Are Hyundai Dealers

Hyundai Dealer
Photo: Tyler Moore

Sales volume can be a measure of popularity, though it can also be a measure of availability. In the case of dealership sales, I think both factors are in play. In the second quarter of this year, the most popular dealerships to sell were Chrysler, Dodge, and Jeep at 29 each. Curiously, only 28 Ram dealers were sold, which makes me think someone held onto their Ram rooftop.

By comparison, there were 23 Ford dealerships sold, 12 Chevy dealerships, and 12 Hyundai dealerships (although that number is a 100% increase over 2025).

According to Automotive News, the popularity of CDJR stores is partially a belief that the brand is near the bottom, which means there’s a lot of upside:

Dahl Automotive, of La Crosse, Wis., bought a Minnesota Chrysler-Dodge-Jeep-Ram store in June as a long-term bet on future profitability, dealer Andrew Dahl said.

“There’s cycles with the brands,” Dahl said. “They get hot, they have a few off years, but they come back.”

Dahl Automotive acquired two Chrysler-Dodge-Jeep-Ram stores in 2023. Since then, Stellantis has revamped its field team and bolstered support for dealers, Dahl said.

And it is refreshing its lineup.

Not a lot of Toyota dealers were sold, because who would ever sell a Toyota dealer?

Toyota Might Get Hit By Rules Targeting China

2025 Bz4x awd Main 5
Photo credit: Toyota

There’s been a lot of consternation in Europe about the rise of Chinese automakers, which threaten the continent’s important auto industry employment. There’s been a big push for ‘Made in EU’ rules that restrict government incentives or tax breaks to vehicles that have 70% of their content made in EU.

This is a big deal for automakers as Nikkei Asia points out:

A delegation from the Japanese government and the Japan Automobile Manufacturers Association met Sept. 16 with senior officials from the European People’s Party, the largest party in the European Parliament. About 40 people gathered in the parliament’s main building in Strasbourg.

“Our European operations are at risk of collapse,” a Japanese auto executive said.

In Europe, it is common for companies to provide employees with vehicles that can be used privately as part of their compensation packages. Corporations enjoy tax breaks on these “company cars.”

Company cars account for roughly 60% of new registrations in the European auto market. But the IAA states that EVs manufactured in non-EU countries would be ineligible for the company car tax breaks. Individuals who buy electrics made outside the EU would be ineligible for government purchase subsidies as well.

That’s not great. There is some Japanese production in Europe, though the biggest is probably Nissan’s Leaf plant in northern England, which is technically not Europe these days. Toyota is already a big automaker and manufacturer in Europe, but it hasn’t focused on EV production there, which could be an issue.

Here’s A Preview Of The New Alpine A110

Alpine A110 Sculpture Large
Source: Alpine

As Adrian pointed out, the Alpine A110 is a lightweight miracle and a stunning piece of car design.” I couldn’t have said it better myself. Of all the cars I’ve driven in the last decade, the A110 remains one of my favorites.

It’s also been for sale for what feels like 30 years. A new A110 is coming, and Alpine has this sculpture to represent what the future looks like. Here’s the way the company describes the A110 in its press release:

The blue veil used in this sculpture, like a point of tension at the very moment it is caught by the wind, also suggests lightness and aerodynamics — key elements of a sports car in which form follows function. One of the strong inspirations comes from the Concorde epic, a symbol of French technological excellence, with a unique style forged by the exceptional performance of a civil aircraft capable of breaking the sound barrier. This precise moment, marked by a powerful sonic resonance, is one of the major sources of inspiration for the sculpture: a suspended instant charged with a high concentration of energy.

These elements must be combined with the DNA that makes an Alpine A110: proportions and a stance in the lineage of the Berlinette and the current A110. The third generation will unmistakably be an Alpine A110, with its V-shaped front-end treatment, the dual light signature suggested here, the typical side modelling born from the evocation of movement — modernised and more sculptural — and the contrast between tension and curvaceous volumes, conveyors of emotion and symbols of Alpine’s technical mastery.

This is enough to make me think that maybe Alpine isn’t going to mess this up physically, though I’m still skeptical about how much they can make an EV feel like an A110.

What I’m Listening To While Writing TMD

I am on the couch eating breakfast and watching Gilmore Girls (shocker), and Rory brings Lane to a party with the Chilton girls. There’s a DJ and he plays “Where It’s At” by Beck and “Ms. Jackson” by Outkast. These are great songs and era appropriate, but it’s hard to believe that anyone at that party is cool enough to choose it. Then I remembered that they’re wealthy and probably hired New York’s best DJ. Either way, let’s enjoy some Outkast.

The Big Question

Which car dealership would you own if you could own any car dealership? I guess Beau doesn’t get to answer this one. Actually, I am curious what else Beau would like to have in the group.

Top photo: Barnes Petroleum

 

 

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Dennis Ames
Member
Dennis Ames
1 month ago

Doesn’t the use of Red Dye Diesel, impact the Heating oil market, ( not that Texas cares) ? Heating oil is WAYYYY up in New England..

CreamySmooth
Member
CreamySmooth
1 month ago
Reply to  Dennis Ames

It’s all pretty much the same distillate; so yes

Kevin B
Kevin B
1 month ago
Reply to  Dennis Ames

I don’t usually fret over things that don’t affect me directly, but I am actually concerned about those who need heating oil. This winter could be an absolute calamity for them.

Dan1101
Dan1101
1 month ago
Reply to  Kevin B

Trouble is *everything* is a lot more expensive. I heat with electric, but my electric cost has doubled over the last couple years with the same usage.

Ranwhenparked
Member
Ranwhenparked
1 month ago
Reply to  Kevin B

We can probably still call Joe Kennedy and get free oil from our friends in Venezuela

Oh, wait

Whelmed but not Overly
Whelmed but not Overly
1 month ago
Reply to  Dennis Ames

Excellent point; supply and demand.
If dyed diesel demand increases due to on-road users gobbling up all of the supply, the cost will increase. Farmers and ranchers will end up paying even more.
Tell me why I’m wrong.

Space
Space
1 month ago

Because dyed diesel is just diesel without taxes.

Harvey Firebirdman
Member
Harvey Firebirdman
1 month ago

Wouldn’t care to own any new brand car dealer so I would own a classic car dealership most likely.

Cloud Shouter
Cloud Shouter
1 month ago

Ferrari. Those people would do anything to get one.

Clark B
Member
Clark B
1 month ago

They could do what the governor of Indiana did, and continuously suspend taxes. Our gas tax has been suspended since shortly after the start of the war, and gas is under $4/gallon here.

Of course, that is creating a significant deficit in our road works funding. Supposedly the state has funds to cover that, but I’m having a hard time believing it’s a sensible long-term solution. And diesel was $6.89/gallon when I last filled up the Sportwagen.

Harvey Firebirdman
Member
Harvey Firebirdman
1 month ago
Reply to  Clark B

Hello fellow Hoosier. Yeah just sucks diesel is still around 7 bucks in my area (at least I am not driving my truck and my Kubota I filled both my 5.5 gallon jugs around 5 bucks a gallon hah). Glad I am not dailying said truck anymore or my FJ. Hell my Firebird I only drive to work like once a month since it only gets 11-12mpg and I commute ~96miles. I would be broke if I had to commute with that all the time haha.

DONALD FOLEY
Member
DONALD FOLEY
1 month ago
Reply to  Clark B

The state is giving up $0.525 per gallon on gasoline and $0.62 on diesel. Those taxes are the fifth highest in the nation, but needed.

Younork
Younork
1 month ago

I believe it’s been mentioned here, and it’s certainly been mentioned elsewhere, but the consistant short term thinking of American politicians will be our downfall. Our politicians’ inability to think beyond the next election cycle leads to foolish reactionism to issues they themselves caused. Furthermore, it causes endless changes in policy which leads to high amounts of uncertainty. See: yesterday’s CAFE standards roll back.

Nsane In The MembraNe
Member
Nsane In The MembraNe
1 month ago
Reply to  Younork

Politicians AND corporations, but they’re essentially a single entity once you reach end stage capitalism….and we blew by that mile marker a long time ago

Jay Vette
Member
Jay Vette
1 month ago
Reply to  Younork

I’m sure it’s painfully obvious, but that’s because most of our politicians are only worried about getting re-elected and holding onto power, not actually helping the people they represent. Too often, those least deserving of power are the ones who get it.

Younork
Younork
1 month ago
Reply to  Jay Vette

100%. There were attempts at isolating agencies from political forces and election cycles; the Fed has managed to dodge a significant portion of the presure from the Trump admin. But now we’re seeing the effects of agencies, like the EPA, DHS, HHS, CDC, FTC, and the FCC, being independent in precedent only. The ideas are there, it’s just that the system has been pushed past its breaking point and checks, such as confirmation hearings, are not functioning.

Beto O'Kitty
Member
Beto O'Kitty
1 month ago
Reply to  Jay Vette

You are all correct.
SOLUTION: Publicly funded elections.

Howie
Member
Howie
1 month ago
Reply to  Beto O'Kitty

Citizens United threw that idea away

DONALD FOLEY
Member
DONALD FOLEY
1 month ago
Reply to  Beto O'Kitty

Defund.

Dogpatch
Member
Dogpatch
1 month ago
Reply to  Beto O'Kitty

Solution…….term limits on all elected offices,state and federal.

Beto O'Kitty
Member
Beto O'Kitty
1 month ago
Reply to  Dogpatch

Combine public funding and term limits, though term limits hasn’t limited the massive damage of late.

Dan1101
Dan1101
1 month ago
Reply to  Younork

I think even though many Dems are also in corporate pockets, at least overall they try to fight for the environment and try to fix the problems and huge debt that the last Republican administration caused. The Republican strategy seems to consist of “exploit and profit no matter what.”

Nsane In The MembraNe
Member
Nsane In The MembraNe
1 month ago

Unfortunately I think these dealerships are seeing more business because they’re spectacularly lax with financing and their cars of questionable quality are all that most people can afford. I mean…you can go to a Jeep dealership and get approved for Cherokee Hybrid for $35,000 and 2.9 or whatever percent APR or go to Toyota and wait 6 months for a RAV4 for $50,000 financed at 7% APR.

Unfortunately the long term benefits of paying more upfront for better vehicles are shrinking due to how dire economic circumstances are and companies like Toyota making their cars artificially scarce. You also have to factor in that Stellantis and Hyundai will finance anyone with a pulse and make money hand over fist on dishing out bad loans.

None of this is good, but line must go UP and the corporations know their losses will be socialized.

Younork
Younork
1 month ago

The Boots theory of economics applies to cars too. I’ve seen a few friends get lured by a cheap car, just to pay $1,000s more later on in repairs.

Also, Toyota’s artificial scarcity is incredibily frustrating; but it seems to work for them so I doubt we’ll see any change soon.

Nsane In The MembraNe
Member
Nsane In The MembraNe
1 month ago
Reply to  Younork

Toyota is in the business of selling cars, not helping people. Nothing will change and I essentially view their vehicles as luxury purchases at this point. Whether or not that’s sustainable for them long term remains to be seen.

Sackofcheese
Sackofcheese
1 month ago

FWIW I don’t think Toyota is intentionally limiting supply. I do think they are having a hard time keeping up with the demand while trying to minimize the damage and supply chain issues surrounding the tariffs. The tariffs are absolutely destroying the Tier 1 and 2 suppliers, which is significantly hampering the production on the OEM Side. My BiL works on the line at a Toyota Plant, and they are churning out RAV4s and Camrys as fast as possible. Originally, they weren’t even supposed to be building the new gen RAV4, so it got a late launch, and they didn’t start building them until July.

Huja Shaw
Huja Shaw
1 month ago

Reading the news, auto-related or otherwise, is exhausting these days.

Harvey Firebirdman
Member
Harvey Firebirdman
1 month ago
Reply to  Huja Shaw

Why I really try to steer clear from most of it. It just makes me more and more depressed. Guess I am glad I got an EV last year but NIPSCO is trying to make that a moot point also with their ever increasing electric rates and fees.

Space
Space
1 month ago
Reply to  Huja Shaw

Humans aren’t built to know and care about everything going on in the world.

Tbird
Member
Tbird
1 month ago

So – let them contaminate their systems with dye and face consequences down the line or out of Texas? Better to just forgive the Road Tax on all diesel in the short term…

Pay me now or pay me later, roads still have to be paid for somehow. Just more kicking the can down the road for political points in the short term.

Last edited 1 month ago by Tbird
Goose
Member
Goose
1 month ago
Reply to  Tbird

Yup. Then they will get essentially a bailout package from the Federal Government in the form of a (D)-led bill to rebuild failing infrastructure. It might even have clear cut name like the last Infrastructure Investment and Jobs Act.

Unimaginative Username
Member
Unimaginative Username
1 month ago
Reply to  Tbird

I mean, I guess this could be a thing if you never leave Texas? But yeah, that dye can stick around in your fuel system a while and at least here in California the fines for dodging a few cents’ tax can be pretty steep – 20ish years ago when diesel prices were first surpassing gasoline I would occasionally run across random checks driving my Excursion through the Imperial Valley and one of the chippies told me the fine for getting popped with red dye in a road vehicle was something like $600 in mid-2000s money…

Horizontally Opposed
Member
Horizontally Opposed
1 month ago
Reply to  Tbird

I wonder what level of federal redirect of funds could be implemented here. Because you could in theory have blue states effectively pay for fixing roads in poor red states so those trump voting souls can have cheaper fuel.

Last edited 1 month ago by Horizontally Opposed
Spikedlemon
Spikedlemon
1 month ago
Reply to  Tbird

Is this not completely aligned with Texas, and privatizing electricity generation and how well that plays out in a storm?

*Jason*
*Jason*
1 month ago

“The governor also requested the U.S. Environmental Protection Agency to waive federal ultra-low sulfur diesel requirements to boost supply.“

Public service announcement. Running low sulfur diesel (500 ppm) in a vehicle with a particulate filter will destroy that DPF.

Save cents on fuel / spend thousands on parts.

Nsane In The MembraNe
Member
Nsane In The MembraNe
1 month ago
Reply to  *Jason*

That’s the American way, baby! Immediate, short term gains for the individual and huge, catastrophic consequences down the road for everyone!

Harvey Firebirdman
Member
Harvey Firebirdman
1 month ago
Reply to  *Jason*

But if it gets diesel to like 5 bucks a gallon my 12v cummins and tractor (small enough to not have any emission systems) will leave my wallet a little heavier haha.

But yeah anyone running this on a newer diesel would be dumb.

Phil
Phil
1 month ago
Reply to  *Jason*

Ain’t Abbott’s problem. It’s just gotta last until the election.

The bigger question is, will the $5,000 bribe check buy me the DPF repair?

Sackofcheese
Sackofcheese
1 month ago
Reply to  Phil

No, but it will buy you the lightweighting package.

Since we’re being illegal with bribery anyway what’s another law to break?

Johnny Ohio
Member
Johnny Ohio
1 month ago

There is no way that I would buy off-road diesel fuel for anything. First, the price difference really isn’t much. Second, I used to put it in my Kubota tractor and the stations with off-road diesel have shitty tanks around here apparently. I had sediment, or some kind of particulate, in my tank after a while that clogged my fuel tank. My uncle a state away had the same problem so maybe it wasn’t just the two stations in my area that have it.

Last edited 1 month ago by Johnny Ohio
Harvey Firebirdman
Member
Harvey Firebirdman
1 month ago
Reply to  Johnny Ohio

Yeah if it is just cents on the gallon it is not worth it especially with those issues. Now if it was 5 bucks vs the 7 bucks diesel is around for me I would make sure to install a better filter on my Kubota and my cummins I already run good Baldwin filters. Just sucks with my cummins I have to make sure to add a cetane booster due to the ultra low sulfur diesel being to dry and not good for the fuel pump.

Johnny Ohio
Member
Johnny Ohio
1 month ago

I’ve since put a filter on my tank. I still use the factory fuel line filters though.

Alexk98
Member
Alexk98
1 month ago

The disaster declaration in Texas is utterly shambolic. Abbot even directly states in the statement about the declaration that it is just to lower prices, not because of a shortage or supply shock that stands to actually inhibit industry. This is the sort of bold faced cowardice that ruins states and countries. All for what, a 5-10% reduction in cost by giving up the tax revenue? All this stands to do is continue to deprive our infrastructure of deeply needed investment while supplying a rounding-error amount of savings to a subsection on the population.

AllCattleNoHat
AllCattleNoHat
1 month ago
Reply to  Alexk98

It’s okay, when/if the Democrats get back into control they will get blamed for increasing taxes and/or gas/diesel prices increasing back agian to make up for the shortfalls. A double win for everyone. /s

Data
Member
Data
1 month ago

A disaster declaration seems appropriate for Trumps time on office.

TBQ: A Lexus dealership. High demand, high margins, Toyota reliability brings repeat business. Maybe I can score me an LC500 demonstrator as the owner.

Tondeleo Jones
Tondeleo Jones
1 month ago

In my best Charlton Heston voice: “SOLVENT RED IS …”

RidesBicyclesButLovesCars
Member
RidesBicyclesButLovesCars
1 month ago

About that Ultra-Low Sulfur Diesel waiver if they get it…

How many people with modern diesel emissions equipment are going to fuel up in Texas with regular low sulfur diesel instead of the ULSD and ruin their aftertreatments? Oh wait, this is Texas, where deleting your diesel is your patriotic duty.

Michael Han
Member
Michael Han
1 month ago

Scion dealership, I’m bringing it back

LTDScott
Member
LTDScott
1 month ago

They can only pull the red dye rabbit out of their hat once. If (when) fuel prices continue to climb, they’re out of temporary tricks up their sleeve.

Angel "the Cobra" Martin
Member
Angel "the Cobra" Martin
1 month ago

A Ferrari dealership, so my pompous arrogant attitude would be legitimized.

Data
Member
Data
1 month ago

Angel “The Luce” Martin. Has a nice ring to it. This is way better than my Lexus plan.

Spikedlemon
Spikedlemon
1 month ago
Reply to  Data

Angel “The Douche” Martin is how to read it as a Ferrari dealer..

Parsko
Member
Parsko
1 month ago

A woodchuck can chuck 4 pounds of wood. But they have really crappy form.

StillNotATony
Member
StillNotATony
1 month ago

If that guy’s logic is sound, then the dealership to buy would have to be…

… Jaguar! They’re pretty down right now, so the only way they can go is up, right?

Right?

Beto O'Kitty
Member
Beto O'Kitty
1 month ago

If we are having trouble inspecting beef surely there are plenty of inspectors willing to stop you and examine the color of your fuel.
The way that things are going maybe Beau should look into selling military surplus vehicles.

V10omous
Member
V10omous
1 month ago

Something that allowed factory ordering, so likely a domestic brand.

TheDrunkenWrench
Member
TheDrunkenWrench
1 month ago
Reply to  V10omous

Somehow, “Michigan Delivery” has a little less prestige than “European Delivery”.

Kevin B
Kevin B
1 month ago

Do they still do that with Corvettes? I would take “Detroit Delivery” over “Bowling Green Delivery” any day. I could catch a football or hockey game there.

TheDrunkenWrench
Member
TheDrunkenWrench
1 month ago
Reply to  Kevin B

While I have almost less than zero interest in Corvettes, the option to help assemble your engine at the factory I always thought was pretty awesome.

V10omous
Member
V10omous
1 month ago

To be clear, in the US “factory” ordering doesn’t mean you pick it up at the factory, even for Corvettes (you get them at the museum across the street). It just means you pick your own options, etc. and the car is delivered to your local dealer.

As a hypothetical dealership owner, I’d want to encourage this for my buyers.

Last edited 1 month ago by V10omous
TheDrunkenWrench
Member
TheDrunkenWrench
1 month ago
Reply to  V10omous

I DO miss the days of being able to order individual options instead of packages.

Wuffles
Wuffles
1 month ago

TBQ: At the moment, a Toyota dealership. You get to mark things $10k over MSRP and still people are lining up out the door to buy it. Then, when they trade in their older Toyotas, you can sell even those used ones for over their original MSRP.

And then I’d go buy a Genesis or something, because Toyota doesn’t make anything I actually want to drive other than the Land Cruiser (but they kinda ruined the current one), and I’d just be in it for the money.

Lincoln Clown CaR
Member
Lincoln Clown CaR
1 month ago

A Stellantis brand. I’d always be able to approve loans for customers and my service and parts departments would be busy.

James McHenry
Member
James McHenry
1 month ago

TBQ: Toyota/Lexus/GR seems pretty great. I could be for the GR GT what Roanoke Chrysler/Dodge/Jeep was for the Viper. Tiny dealer in a cornfield selling supercars. Though now someone comments with a Recall of some sort. No. Don’t spoil my dreams.

Arch Duke Maxyenko
Member
Arch Duke Maxyenko
1 month ago

What car dealership would I own if I could? A Morgan dealership, doesn’t matter how many cars are sold, the company will still be there.

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