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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ChefCJ
ChefCJ
1 month ago

Looks like I picked the wrong week to drive a TDI

Justin
Justin
1 month ago

Most farmers would never run dyed diesel in their trucks ….. right? Give me a break. That’s already happening.

For on highway truck fleets there would be savings, but the dyed diesel distribution infrastructure isn’t the same as the on highway one.

Feels like (gasp) a headline producing stunt.

Last edited 1 month ago by Justin
Cheap Bastard
Member
Cheap Bastard
1 month ago

TBQ. Whatever is best to launder money.

Studmuffin
Member
Studmuffin
1 month ago

So high prices are supposed to be the market’s solution to supply shortages. The Republican governor, is using government intervention to mess with the market solution. Is this socialism yet?

Joke #119!
Joke #119!
1 month ago
Reply to  Studmuffin

Is this socialism yet?

It’s only socialism if everyone benefits.
This one benefits certain voters more likely to vote GOP/MAGA (especially those on the fence).

Ben
Member
Ben
1 month ago

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.

Amusingly, that’s also a Hyundai dealer, so I thought of it immediately when I saw the title. It used to be family-owned, but a few years ago it was sold off to some big conglomerate and now I guess it’s been sold to another one.

Suspending the diesel tax is just using (more) taxpayer dollars to pay for the war. I look forward to Texas begging for a handout to fix their crumbling roads in a few years.

James Mason
Member
James Mason
1 month ago

IT’S A TRAP! So the states subsidize a problem created by the federal government with a minimal (but quite tangible) benefit to the people. Then, at some point in the future, the states have to revoke this and switch back to the status quo because of how much money they are losing in tax revenue. Then whomever is in the Oval Office (and their screeching media harpies) can point a big ugly finger at the states that do this and say, “See, they’re increasing your taxes again!” It’s a losing game.

Last edited 1 month ago by James Mason
Kevin Rhodes
Member
Kevin Rhodes
1 month ago

I would own a car dealership specializing in (used of course) classic cars. How fun would that be? I would probably never actually sell anything.

Cheap Bastard
Member
Cheap Bastard
1 month ago
Reply to  Kevin Rhodes

I can see it now….

Kevin’s Buy Here, Pay Here Klassik Kars.

We’ll finance ANYONE!

Kevin Rhodes
Member
Kevin Rhodes
1 month ago
Reply to  Cheap Bastard

Nope, cash only. I don’t finance ANYONE. Go to a damned bank.

Cheap Bastard
Member
Cheap Bastard
1 month ago
Reply to  Kevin Rhodes

Well if you won’t may I suggest a partnership:

“I would own a BHPH outfit. They seem to be making a lot of money while capitalizing on human misery. I’m not that cold hearted, but this is America today, so I’ll climb on that money train.”

– Kevin B.

Which I guess would make it Kevins’ Buy Here, Pay Here Klassik Kars.

https://www.theautopian.com/why-consumers-may-soon-be-able-to-buy-cheaper-red-dyed-diesel/comment-page-2/#comment-1050830

Kevin Rhodes
Member
Kevin Rhodes
1 month ago
Reply to  Cheap Bastard

LOL! Nope, I don’t want to deal with the sorts of people who need to “BHPH”.

And let’s face it, any dealership I owned would be merely a front for me to write off whatever expenses I could get away with while I built my own car collection anyway. Hobby business rules? What hobby business rules?

Cheap Bastard
Member
Cheap Bastard
1 month ago
Reply to  Kevin Rhodes

Beau, is that you?

Kevin Rhodes
Member
Kevin Rhodes
1 month ago
Reply to  Cheap Bastard

Great minds think alike.

SkaterDad
Member
SkaterDad
1 month ago
Reply to  Kevin Rhodes

This used dealer is like that. They always have a neat selection of old cars and weird stuff like taxis or vans.

https://thielmotors.com/newandusedcars

Kevin Rhodes
Member
Kevin Rhodes
1 month ago
Reply to  SkaterDad

There’s one near me like this in Sarasota too. Can’t recall the name or I’d post thier website. Always has cool stuff on the forecourt.

First Last
Member
First Last
1 month ago

Funny to see the Stellantis dealership sales spun here as an indicator of dealership “popularity.” The headline is “29 dealerships bought!”

Because car distribution by dealership is mandated by state law, and dealership territories are established and protected by the manufacturers, owning a dealership for one of the legacy automakers has become a low-risk, rent-seeking endeavor with dealerships getting passed from one generation to the next. They only ever really get sold when someone retires or dies off and their kids would rather get a lump sum vs running a dealership.

Or, as in this case, as a vote of no-confidence in the brand. Or a forced sale when the dealership is no longer profitable.

For that reason I would frame the CDJR dealership sales as “CDJR dealerships being dumped in droves.”

JT4Ever
Member
JT4Ever
1 month ago

Wait, I’m confused

Removing restrictions on sales of off-road diesel could lower prices for farmers to back under $6 a gallon

If farmers already have access to tax-free red diesel, how will allowing red diesel use on-road help farmers in the slightest? I guess transporting their products over roads to market?

James Mason
Member
James Mason
1 month ago
Reply to  JT4Ever

Correct. They cannot (legally) use off-road diesel in their road-going trucks.

JT4Ever
Member
JT4Ever
1 month ago
Reply to  James Mason

OK, I see that. I was getting hung up on the idea that farmers are mostly already using red diesel for on-farm operations. I didn’t think they would have much on-road use, but I’m probably underestimating how much trucking they do

James Mason
Member
James Mason
1 month ago
Reply to  JT4Ever

Getting grain (or other farm products) from the field to wherever it is being collected in bulk relies on a lot of road diesel.

Mike F.
Member
Mike F.
1 month ago

So the governor of Texas has declared a disaster? I always thought that these were for things like tornadoes, floods, fires, and such. I didn’t realize that they included the governor’s potentially disastrous re-election results.

And I’ll take a Lotus dealership, because I’d get to drive around in Lotuses while going bankrupt.

Last edited 1 month ago by Mike F.
Studmuffin
Member
Studmuffin
1 month ago
Reply to  Mike F.

I think the disaster he declared is the one who is most frequently sighted piloting a golf cart around Mar-a- Lago.

Dan1101
Dan1101
1 month ago
Reply to  Studmuffin

I’d expand that and say the disaster includes all of his enablers and co-conspirators, many of whom are Congressmen.

Eggsalad
Member
Eggsalad
1 month ago

TBQ: I see that Beau owns a Polestar dealership. Might be worthy of a post to see how that’s going for him.

Me, I’d own a Subaru dealership. I’m not some fanboi, but Subaru seems to be a brand that has really good consumer loyalty, although I don’t have figures to back that up. The best business is repeat business.

Beasy Mist
Member
Beasy Mist
1 month ago
Reply to  Eggsalad

Your service bay will always be full too.

Sackofcheese
Sackofcheese
1 month ago

TBQ: Mazda Dealership. I love the brand, and their products. As a customer I haven’t had a bad experience with their dealers, only goodand really great experiences. I feel like it would be an easy dealership for me to get my feet settled with before expanding my empire. It also gives me an excuse to have a Spec Miata race car as a marketing expense. My showroom would always have a new Miata for sale, plus a race car Miata on the display lift. I’d also keep a revolving door of affordable used cars (Sub $20k) and a Sub (10k) lot.

M SV
M SV
1 month ago

Toyota dealer just works. But I would send in secret shoppers often to make sure the staff was behaving properly.

Alabama has already stopped checking AG and logging trucks for red dye for 90 days at this point. That seems logical and ok. They are also in part.the county where they aren’t competing with heating oil. Their road use is relatively limited. If they have it and can use it for what they need for for the time being and can help them keep their head above water.
Everyone else doesn’t need to have that cut out. Brad in the tuned f250 doesn’t doesn’t need to be buying no tax diesel to clown around and take his kids to soccer practice. The rest of the truckers really shouldn’t either.

Anonymous Person
Anonymous Person
1 month ago

“The Big Question:
Which car dealership would you own if you could own any car dealership?”

I know they’re not doing stealerships, but I’d love to be a Slate distributor and service location.

People who drive regular-cab pickups with hand-crank windows are some of the coolest, nicest and helpful people out there.

M SV
M SV
1 month ago

I think some might pop up. Something like a speciality custom shop that also is a delivery location and selling used ones. Maybe with a 3d printer farm to make accessories. Also stocking some parts and accessories and doing wraps.

Jon Myers
Jon Myers
1 month ago

Just throwing out ideas here. Maybe if the government wants to lower the price of diesel they should just declare the Iranian war over and let the market take care of the issue. This seems a bit like banning lumber from Canada, then lowering the permit fees to build a house because the price of lumber has gone up. It is ultimately our government’s policies and a war we started that has caused the diesel price problem.

FormerTXJeepGuy
Member
FormerTXJeepGuy
1 month ago

Owning a Toyota store is basically owning a money printer. I’d pick that first.

Kevin B
Kevin B
1 month ago

I would own a BHPH outfit. They seem to be making a lot of money while capitalizing on human misery. I’m not that cold hearted, but this is America today, so I’ll climb on that money train.

Sasquatch
Sasquatch
1 month ago

Just so I understand, there is X amount of diesel produced and it’s divided into red diesel for agricultural and non-highway use and regular diesel for highway use. The plan is to allow red-dye diesel for highway use. Won’t this just hurt farmers by opening up the red diesel supply to anyone and make food more expensive to purchase as crops rot in the fields because farmers are now competing with trucking companies and bro-dozers for fuel?

DONALD FOLEY
Member
DONALD FOLEY
1 month ago
Reply to  Sasquatch

Surely Abbott’s idea will be worse for Texas farmers.

Sasquatch
Sasquatch
1 month ago
Reply to  DONALD FOLEY

When has Abbot had an idea that wasn’t worse for Texans?

FormerTXJeepGuy
Member
FormerTXJeepGuy
1 month ago
Reply to  DONALD FOLEY

Most ideas Abbott has are bad for everyone.

John Beef
Member
John Beef
1 month ago

Except the oil industry

Lotsofchops
Member
Lotsofchops
1 month ago
Reply to  Sasquatch

It’s about optics not solutions.

A'Aron
A'Aron
1 month ago
Reply to  Lotsofchops

This. So much of this in politics these days on both sides of the aisle.

Step 1:
What do I need to do and say to get elected.

Step 2:
What do I need to do and say to get re-elected.

There is no step 3.

Icouldntfindaclevername
Member
Icouldntfindaclevername
1 month ago

TBQ: I would own a Toyota dealership. 2nd option would be Kia.

The only way to get around the high fuel prices is to reopen both Straits to free running traffic again. Every other option is a “rob peter to pay paul” situation.

Kevin B
Kevin B
1 month ago

One obstacle in the way of lower prices is refining capacity. The destruction of refineries in the Persian Gulf and Russia will be hurting petroleum consumers for a long time.

Icouldntfindaclevername
Member
Icouldntfindaclevername
1 month ago
Reply to  Kevin B

Very true!

Strangek
Member
Strangek
1 month ago

That ship has sailed (pun intended, I guess). The straits as we knew them won’t exist in that way in the future. People have seized control, it’s not going back to the way it used to be.

TheDrunkenWrench
Member
TheDrunkenWrench
1 month ago

TBQ:

If I had the funding, I’d work with Morgan to have a dealer/distribution network in Canada. Purely so I can sell 3-Wheelers.

I’d probably have to work out an arrangement with Morgan where they ship them as kits for assembly. Since we don’t have the low-volume carve-outs to avoid crash-testing in Canada.

Kevin B
Kevin B
1 month ago

Allowing red dye in personal vehicles will give the coal rollers more while taking away from farmers. What’s more, the price of non-taxed diesel will now rise due to increased demand. How is this a solution?

Last edited 1 month ago by Kevin B
Howie
Member
Howie
1 month ago
Reply to  Kevin B

Its really not, its a bandaid on a serious problem. You raise a fine point though, one which I hadn’t thought of

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

I stated on here before it has been funny to see the diesel bro dozers out there trying to not drive like idiots anymore because of current diesel prices. They haven’t been driving their trucks like it is a race car as much and they haven’t been riding my ass as much lately. The same cannot be said for the gasser trucks though still have the typical lifted ram 1500s riding my ass.

Last edited 1 month ago by Harvey Firebirdman
86-GL
86-GL
1 month ago

Volvo, so I can outfit the offices and showroom with nice Scandinavian furniture, and have 1:18 models of an ‘85 Group A 242 Turbo & ‘95 850 BTCC estate on my desk.

Volvo customers are generally practical professional people who are loyal to the brand. Like Lexus, they see value in servicing their car at the dealer, which is great for recurring revenue. They don’t need to worry about money, and I don’t have to feel badly about ripping anyone off with predatory financing.

Volvo’s current lineup of crossovers are kinda meh, but apparently they’re bringing sedans and wagons back, so maybe something fun to look forward to there.

Real talk: I wouldn’t want to own a car dealer. There just isn’t that much variety to the sales experience, and you are very much the front line when it comes to the manufacturer’s questionable product mix and quality issues.

I used to sell bicycles when I was in high school and would do it again. Tons of variety, as we had 2-3 reputable brands on the floor, at a variety of price points and use cases. Not as much money in the bike business, but lots of fun parts and working with customers to personalize their rides.

Here in Canada, your main customer base has already self-selected as enthusiastic about riding, and are generally patronizing your store by choice rather than as a product of their circumstances.
Regarding those who truly have no other choice but to bicycle for their lively hood, you can feel good about selling them a reliable machine that won’t depreciate significantly, or further their financial hardship.

Last edited 1 month ago by 86-GL
Bronco2CombustionBoogaloo
Bronco2CombustionBoogaloo
1 month ago

“Chrysler Dodge Jeep Ram Dealers Are Suddenly Popular”
RECESSION ALERT!!!
RECESSION ALERT!!!

Spikedlemon
Spikedlemon
1 month ago

Credit crisis incoming.

Fratzog
Fratzog
1 month ago
Reply to  Spikedlemon

See, i said the same thing when the new electric hummer came out. But stellantis may be the true canary.

Howie
Member
Howie
1 month ago

The Stellantis dealer near me is Carvana. A lot less on the lot as well.

Burt Curry
Member
Burt Curry
1 month ago

I might as well go for a luxury dealership, like Rolls or Bentley. That way I can have a nice sweet ride with a company dealer tag. And the service department always on hand to fix it regularly.

Last edited 1 month ago by Burt Curry
I don't hate manual transmissions
Member
I don't hate manual transmissions
1 month ago

There are two sides to the dealership transactions. You’re highlighting “hey, people are buying these!” but somewhere on the other side of the equation lies the question why are so many up for sale?

My guess is the sellers aren’t seeing a rosy future and decided to get out while the getting out was good.

It would be interesting to see the financial numbers on the transactions. One has to wonder how much of a discount (if any) the buyers got on those deals.

DONALD FOLEY
Member
DONALD FOLEY
1 month ago

Those with experience running these franchise dealerships are choosing to let them go. Are they giving them away?

FormerTXJeepGuy
Member
FormerTXJeepGuy
1 month ago
Reply to  DONALD FOLEY

In some cases they are. Buyers are paying for assets, inventory, and real estate but the goodwill or blue sky values for CDJR are at or near zero in some transactions.

A'Aron
A'Aron
1 month ago

Warren Buffet,
Be fearful when others are greedy, and greedy when others are fearful.
Be interesting to see who is right in the long run on this, the fearful doing the selling or the greedy doing the buying.
I think the buyers might be getting in at the right time personally.

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