Editing Diesel fuel (section)

=== Taxation ===
Diesel fuel is similar to [[heating oil]], which is used in [[central heating]]. In Europe, the United States, and Canada, [[tax]]es on diesel fuel are higher than on heating oil due to the [[fuel tax]], and in those areas, heating oil is marked with [[fuel dyes]] and trace chemicals to prevent and detect [[tax fraud]]. "Untaxed" diesel (sometimes called "off-road diesel" or "red diesel" due to its red dye) is available in some countries for use primarily in agricultural applications, such as fuel for tractors, recreational and utility vehicles or other [[non-commercial|noncommercial]] vehicles that do not use [[public road]]s. This fuel may have sulfur levels that exceed the limits for road use in some countries (e.g. US).

This untaxed diesel is dyed red for identification,<ref name="26 CFR 48.4082-1">{{cite web
 |url=http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=5e6923448149c8865561ae47adaf28a7&rgn=div8&view=text&node=26:16.0.1.1.6.5.14.41&idno=26
 |title=Title 26, §&nbsp;48.4082–1 Diesel fuel and kerosene; exemption for dyed fuel.
 |access-date=2006-11-28
 |author=United States Government Printing Office
 |author-link=United States Government Printing Office
 |date=2006-10-25
 |work=Electronic Code of Federal Regulations (e-CFR)
 |quote=Diesel fuel or kerosene satisfies the dyeing requirement of this paragraph (b) only if the diesel fuel or kerosene contains— (1) The dye Solvent Red 164 (and no other dye) at a concentration spectrally equivalent to at least 3.9 pounds of the solid dye standard Solvent Red 26 per thousand barrels of diesel fuel or kerosene; or (2) Any dye of a type and in a concentration that has been approved by the Commissioner.
 |url-status=dead
 |archive-url=https://web.archive.org/web/20070323020523/http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=5e6923448149c8865561ae47adaf28a7&rgn=div8&view=text&node=26%3A16.0.1.1.6.5.14.41&idno=26
 |archive-date=2007-03-23
 }} Cited as 26 CFR 48.4082-1. This regulation implements {{usc|26|4082-1}}.</ref> and using this untaxed diesel fuel for a typically taxed purpose (such as driving use), the user can be fined (e.g. US$10,000 in the US). In the United Kingdom, Belgium and the Netherlands, it is known as [[red diesel]] (or gas oil), and is also used in [[agricultural]] vehicles, home heating tanks, refrigeration units on vans/trucks which contain perishable items such as food and medicine and for marine craft. Diesel fuel, or marked gas oil is dyed green in the Republic of Ireland and Norway. The term "diesel-engined road vehicle" (DERV) is used in the UK as a synonym for unmarked road diesel fuel. In India, taxes on diesel fuel are lower than on petrol, as the majority of the transportation for grain and other essential commodities across the country runs on diesel.

Taxes on [[biodiesel]] in the US vary between states. Some states (Texas, for example) have no tax on biodiesel and a reduced tax on biodiesel blends equivalent to the amount of biodiesel in the blend, so that B20 fuel is taxed 20% less than pure petrodiesel.<ref>{{cite web |url=http://www.eere.energy.gov/afdc/progs/ind_state_laws.php/TX/BIOD |title=Texas Biodiesel Laws and Incentives |publisher=U.S. Department of Energy |access-date=2008-02-29 |url-status=dead |archive-url=https://web.archive.org/web/20080205060806/http://www.eere.energy.gov/afdc/progs/ind_state_laws.php/TX/BIOD |archive-date=2008-02-05 }}</ref> Other states, such as North Carolina, tax biodiesel (in any blended configuration) the same as petrodiesel, although they have introduced new incentives to producers and users of all biofuels.<ref>{{cite web |url=http://www.eere.energy.gov/afdc/progs/ind_state_laws.php/NC/BIOD |title=North Carolina Biodiesel Laws and Incentives |url-status=dead |archive-url=https://web.archive.org/web/20071130001952/http://www.eere.energy.gov/afdc/progs/ind_state_laws.php/NC/BIOD |archive-date=2007-11-30 }}</ref>