On-Road vs. Off-Road Diesel: Which is Right for Your Equipment?

Organizations in Georgia that rely on diesel to power their commercial motor vehicles and equipment spend an enormous amount of money on fuel and oil expenses. When the price of diesel peaked at $5.75 in June 2022, the price of goods and materials shot up. From farm tractors to semi-trucks to road construction equipment, everyday people have learned that nearly every inch of the Georgia supply chain runs on diesel. 

That being said, industry leaders can technically choose between on-road vs off-road diesel — totally identical fuels except for the color — to run heavy-duty commercial motor vehicles and equipment that only operates away from local roads and highways. We say “choose” because both kinds are legal in off-road equipment (on-road vehicles are legally required to use on-road fuel).

But the choice is clear: off-road diesel costs less. Ever wonder why? Knowing the difference between on-road and off-road diesel fuel can help you make an informed business decision.

What is On-Road Diesel Fuel?

This fuel product, which is usually a No. 2 diesel, is primarily used by transportation assets. Freight carriers, owner-operators, and fleet operations use diesel on-road fuel for semi-trucks — but any diesel vehicle that drives on-roads and highways is legally required to use on-road diesel. This green-tinged substance is abundantly available at most filling stations and truck stops. Here are a few things to keep in mind about on-road diesel:

• Color: On-road diesels are clearish and slightly green. Refineries place green dye in the fuel (which is obvious when freshly dispensed into a bottle to observe its color). This dye doesn’t impact the fuel. It’s added to distinguish the on-road stuff from its off-road counterpart.
• Mandates: State and federal regulations require the vast majority of motor vehicles that operate on public roads to use either common gasoline or on-road diesel.
• Taxation: The federal government levies a $0.24 tax on every gallon of on-road diesel. States tack on an additional $0.34 on average. California adds a whopping $0.963 per gallon, while Pennsylvania adds $0.741. At $0.362 per gallon, Georgia is just above average but refunds a percentage for bulk deliveries.

It may come as something of a surprise, but the U.S. consumes approximately 125 million gallons of on-road diesel every day. It also tallies up to nearly 25 percent of all energy used in the country.

What is Off-Road Diesel Fuel?

The off-road version has a reddish tint but is otherwise chemically the same as on-road fuel. The color stems from a red dye additive designed to create a visible difference between off-road diesel and on-road diesel. Unlike its counterpart, off-road diesel is not intended for semi trucks and other vehicles that travel on public roads. These are other things worth considering about off-road diesel.

• Color: Off-road diesels are dyed red, and operators of on-road vehicles caught with red fuel can face fines.
• Restricted Availability: This product is not generally available for public consumption. Farms, construction outfits, and other businesses must usually order off-road diesel from an authorized distributor.
• Tax Implications: Off-road diesel remains exempt from state and federal taxes.

Due to off-road diesel being less easily accessible, too many organizations default to No. 2 products. Comparing off-road vs on-road diesel highlights when one or the other is in your best interest.

Off-Road Diesel vs On-road Diesel

It’s important to understand that off-road and on-road diesel have more things in common than they do differences. Their chemical composition is the same. That’s why either resource can power up a diesel engine. The green and red categories exist because of tax regulations. On-road diesel is taxed at a higher rate to fund road maintenance, whereas off-road diesel is not — and so it's cheaper! Off-road diesel may run 10 to 25 cents lower than on-road products. The key for organizations that run bulldozers, tractors, generators, and other off-road equipment is to get the right stuff and protect their budgets by working with a delivery company.

Off-Road and On-road Diesel Delivery Services in Columbus, GA

Regardless of which type of diesel fuel your organization needs, Whatley Oil provides convenient, cost-effective diesel fuel deliveries that Georgia businesses can trust. From the construction site bustling with heavy-duty diesel-powered machinery to the farm tractor working the fields, diesel fuel keeps our country running. If you are interested in saving money on diesel fuel, contact Whatley Oil today. Let’s get the process started.