Dyed diesel is now legal on U.S. roads. What are the rules in Canada?
The U.S. has legalized the use of red-dyed diesel on public roads to combat high fuel prices, but Canada maintains strict regulations against its use for highway vehicles. Canadian agricultural leaders are calling for similar policy changes to stabilize costs.
Why it matters
The divergence in fuel policy between the U.S. and Canada highlights the economic pressures on the agricultural sector and the impact of regional tax legislation.
Dyed diesel has now been cleared for general use in the U.S. as gas prices soar, but Canadians could still face fines if caught using it on roads and highways.
Red-dyed diesel is essentially the same as regular diesel fuel, but is coloured a reddish brown in order to identify it for use off-road, like with farming, construction vehicles and other off-road uses.
U.S. President Donald Trump, on Monday, signed an executive order directing secretaries of the U.S. Treasury as well as the departments of transportation and agriculture to waive the off-road requirement for this tax-free diesel.
The move followed similar changes at the state level, including in Texas , as Americans struggle to pay for diesel and other fuels as a result of soaring prices from the U.S. war on Iran.
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