DYED DIESEL (RED DIESEL) DELIVERY + COMPLIANCE
Pak Petroleum Marketing (PPM) provides compliant dyed diesel delivery and red diesel supply throughout El Campo, Wharton, Greater Houston, and Southeast Texas. For 20+ years, farmers, ranchers, construction companies, and industrial operations have trusted PPM for tax-exempt fuel delivery with complete regulatory documentation.
What is Dyed Diesel?
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Dyed diesel (also called red diesel or farm diesel) is chemically identical to clear highway diesel, but contains a red dye marker (Solvent Red 26 or 164) that identifies its tax-exempt status. This fuel is exempt from federal and state highway fuel taxes, making it significantly cheaper for qualifying off-road uses.
Our Dyed Diesel Services:
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Bulk delivery: 300 to 4,500 gallons (bobtail trucks)
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Large delivery: up to 7,500 gallons (transport trucks)
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On-site pickup at our El Campo bulk plant facility
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24/7 emergency delivery for qualifying customers
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Complete compliance documentation with every delivery​
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Cash discount available! Save 5¢ per gallon when you pick up red diesel at 109 Higbee Street in El Campo.
WHO CAN LEGALLY USE DYED DIESEL IN TEXAS
Texas law restricts dyed diesel to specific off-road, non-highway applications. Understanding these regulations protects your operation from IRS penalties that can exceed $10,000 per incident.
Approved Uses for Red Diesel:
TEXAS DYED DIESEL COMPLIANCE & DOCUMENTATION REQUIREMENTS
PPM ensures every dyed diesel delivery meets federal IRS and Texas Comptroller requirements. Our comprehensive documentation protects your operation during audits and regulatory inspections.
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First-Time Buyer Registration
When purchasing dyed diesel, you'll complete registration forms that include your business information, equipment descriptions, and acknowledgment of use restrictions. This creates a compliance paper trail from your first purchase.
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Documentation We Provide:
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Bill of Lading (BOL) for every delivery
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Tax exemption certificates and permits
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Delivery confirmation and usage records
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Compliance guidance and regulatory updates
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High-Volume Requirements
Operations using more than 10,000 gallons annually may need additional registration as "dyed diesel fuel bonded users" through the Texas Comptroller, including bonding requirements and periodic reporting.
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Penalties for Violations:
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Federal IRS penalties: $1,000 per violation OR $10 per gallon (whichever is greater)
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Texas state penalties: back taxes, fines, and potential criminal charges
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Both vehicle operators and business owners can be held liable
DYED DIESEL COMPLIANCE
BEST PRACTICES
Storage and Handling
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Maintain separate storage tanks for dyed and clear diesel
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Label all tanks clearly with fuel type and restrictions
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Use different colored nozzles for each fuel type
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Position tanks in different locations when possible
Record Keeping
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Maintain purchase receipts and delivery documentation
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Log equipment usage and fuel consumption
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Keep registration forms and compliance certificates
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Retain records for minimum four years (IRS audit period)
Training and Procedures
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Train all personnel on fuel type restrictions
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Establish clear procedures for fuel handling
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Document any accidental cross-contamination
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Report errors immediately and take corrective action
When in Doubt, Use Clear Diesel
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If uncertain about a particular use, choose taxed clear diesel. The tax savings aren't worth five-figure penalties and regulatory complications.
FREQUENTLY ASKED QUESTIONS
This page provides general information about Texas dyed diesel regulations as of April 2026. For specific guidance on your situation, consult the Texas Comptroller's office or a qualified tax professional. Regulations change, and individual circumstances vary.