If you buy large amounts of gas or diesel fuel, you probably know how supply, demand, international markets, and production impact fuel prices. However, did you know that taxes make up about 20% of the cost of gas and diesel? The federal government levies heavy taxes for both gas and diesel fuel. Moreover, states impose taxes that will vary, and even counties can impose local taxes.

If you run a farm or other commercial business, you have probably run across red diesel fuel. Red diesel is regular fuel but dyed for tracking and recording purposes. It is not dyed because it is more efficient, but for tax reasons.

If you run a business that is dependent upon regular use of fuel, it can sometimes become difficult to get it to your location. If you’re spending too much time and money on your current delivery or pick-up schedule, it might be time to analyze your entire buying process. Write down the pros and cons of the way you currently purchase fuel in bulk to help you decide if delivery is right for your needs.

Diesel fuel has far more uses than regular gasoline because its components contain more energy per gallon. Experts rate diesel fuel more favorably than gasoline because the vapors rarely explode or ignite during usage. As of 2007, the Environmental Protection Agency (EPA) has mandated that all highway diesel fuels sold in the United States must meet specifications before the general public has access to it. Doing this is thought to help reduce the emissions that come from diesel powered vehicles.

Red diesel is a specialized type of fuel that is cheaper than traditional kinds of fuel due to a different tax structure and color. This fuel is used in a variety of industrial, heating, and agricultural purposes. Be careful not to use it for an unauthorized purpose. It is against the law to use red diesel for anything other than its intended purposes, and you could be subjected to criminal penalties if you do.