Dyed diesel still currently illegal on Montana roads, despite executive order

The Montana Department of Transportation said in a social media post on Wednesday that red dyed diesel is still illegal on Montana roads, despite a recent executive order from President Donald Trump.

“Montana statute banning the use of dyed diesel on the state’s public roads remains in effect,” a Facebook post from MDT says, adding the department will share more information when it receives it.

Announced on Monday, the federal executive order allows for wider use of dyed diesel, which is exempt from federal fuel taxes. It does not change individual state taxes. Trump said he issued the order to help ease soaring fuel prices.

Red dyed diesel is not allowed for on-road use and is specifically directed toward farm equipment or recreational equipment. Some states, including South Dakota, have used the announcement to widen dyed diesel usage.

The diesel, which is identical to standard diesel fuel, is dyed red as a way to alert law enforcement.

The fuel is not sold at all gas stations and retails for around $1 per gallon cheaper than other diesel because it does not include state and federal taxes. Those taxes often go toward road and transportation projects, but since red dyed diesel is used in agricultural and recreational equipment that do not travel on roads, it’s exempt from those taxes.

Burning red dyed diesel in a vehicle or truck leaves a red residue that tells authorities that it’s being used in that particular vehicle, which can be ticketed for not paying the fuel tax.

In Montana, a first offense is a fine up to $1,000, a second offense is a fine up to $5,000, and third and subsequent offenses carry a $535 minimum fine and potentially jail time.

The move comes in the midst of a severe spike in cost of materials using oil in the United States as war in the Middle East has severely hampered maritime global trade and throttled oil transportation.