Prices for red diesel vary by region, supplier, and quantity. Buyers typically see price ranges driven by tax exemptions, delivery, and demand. This guide outlines typical cost ranges, what influences price, and ways to save on red diesel purchases in the United States.
| Item | Low | Average | High | Notes |
|---|---|---|---|---|
| Red Diesel Price per Gallon | $2.95 | $3.25 | $3.75 | Dyed diesel for off-road use; taxes not charged at the pump for on-road uses. |
| Delivery Fee (per delivery) | $0 | $50 | $150 | Depends on distance and supplier policies. |
| Tax Exemption Verification | $0 | $0 | $0 | Requires proper use and documentation. |
| Environmental/Regulatory Fees | $0 | $0 | $0 | Typically included in some markets via surcharges. |
Overview Of Costs
Assumptions: region, volume, delivery distance, and verification of off-road use. Red diesel costs are driven by base fuel price, delivery logistics, and regulatory considerations. Consumers usually see a per‑gallon range with a fixed delivery or minimum order; bulk purchases often reduce the per-gallon price. Understanding these price levers helps buyers compare suppliers and plan budgets.
Cost Breakdown
The following table separates major cost components for red diesel purchases. Assumptions include typical commercial or large-residential off-road use and standard delivery windows.
| Components | Low | Average | High | Notes |
|---|---|---|---|---|
| Materials | $2.95 | $3.25 | $3.75 | Base price per gallon, before fees. |
| Labor | $0 | $0 | $0 | Not typically charged separately for fuel purchases. |
| Delivery/Disposal | $0 | $50 | $150 | Depends on distance and order size. |
| Permits/Tax Exemption Checks | $0 | $0 | $0 | Only if required by buyer’s sector. |
| Taxes/Fees (if applicable) | $0 | $0 | $0 | Red diesel generally avoids on‑highway taxes but verify local rules. |
| Taxes Adjustments/ surcharges | $0 | $0 | $0 | Some regions add surcharges for tax compliance or handling. |
What Drives Price
Key price drivers include regional fuel markets, delivery distance, volume discounts, and eligibility for tax exemptions. Regional price differences can be substantial due to state fuel taxes, distribution hubs, and competition among suppliers. Assumptions: mixed trucking and agricultural usage, standard delivery windows.
Pricing Variables
Two niche drivers to watch: (1) Volume tiers (bulk orders may unlock lower per‑gallon rates), and (2) Delivery constraints (centralized depots vs. remote locations). For example, a 1,000‑gallon order may drop price per gallon by a few tenths compared with a 200‑gallon delivery, while remote rural routes can add delivery surcharges.
Ways To Save
Cost-saving strategies include securing a standing contract with a local supplier, coordinating multi‑site deliveries to reduce trips, and ensuring proper off‑road use documentation to maintain tax-exemption eligibility. Ask for bundled delivery options and seasonal pricing when demand is lower.
Regional Price Differences
Prices for red diesel vary across three broad U.S. regions and urban vs. rural contexts. In the Northeast, prices can be higher due to distribution costs; the Midwest may show mid-range pricing with frequent promotions; the South often features lower base rates but higher delivery surcharges for remote sites. Assumptions: regional markets, typical commercial buyers, standard order sizes.
Real-World Pricing Examples
Three scenario cards illustrate typical budgeting outcomes with varying specs and needs. Each scenario shows totals and per‑unit estimates to aid comparison.
Scenario A — Basic Off‑Road Use
Specs: 300 gallons, standard delivery to a suburban site, no special additives. Labor is not billed separately. Hours: negligible for purchase. Assumptions: single delivery, standard season.
Costs: Materials $3.10/gal, Delivery $60, Total $963–$1,050, per‑gallon $3.10–$3.50.
Scenario B — Medium-Volume Farm Operation
Specs: 1,000 gallons, bulk order, rural location with one trip. Documentation for off‑road use provided. Assumptions: regional availability, mid‑season.
Costs: Materials $3.20/gal, Delivery $120, Total $3,320–$3,720, per‑gallon $3.15–$3.70.
Scenario C — Large Industrial Site
Specs: 2,500 gallons, multi‑site delivery, potential volume discount applied. Delivery schedule optimized to reduce trips. Assumptions: long‑term contract considerations.
Costs: Materials $3.08/gal, Delivery $240, Total $7,700–$8,900, per‑gallon $3.10–$3.70.
Additional & Hidden Costs
Hidden costs can include delivery windows, minimum order charges, and state‑level surcharges for certain tracked fuels. Some suppliers apply seasonal pricing adjustments aligned with crude oil trends, although dyed diesel itself may not reflect wholesale volatility in the same way as on‑road diesel.
Cost Compared To Alternatives
Comparing red diesel to on‑road diesel shows clear tax differences; red diesel avoids federal road taxes if used only off‑road, but compliance is essential. For facilities prioritizing off‑road compliance, red diesel can offer predictable budgeting with fewer regulatory fetches.
Assumptions: off‑road only usage, regulatory compliance verified.