Rep. Steube Introduces RED Fuel Act to Eliminate Penalties on Dyed Diesel Fuel

August 13, 2026 | Press Releases Rep. Steube Introduces RED Fuel Act to Eliminate Penalties on Dyed Diesel Fuel WASHINGTON –U.S. Representative Greg Steube (R-Fla.) today introduced the Restoring Economic Diesel (RED) Fuel Act , legislation that would eliminate federal penalties for the sale and use of dyed diesel fuel in traditionally taxable applications, including use on public roads and highways. “Farmers, ranchers, and small business owners who rely on off-road diesel should not be treated like criminals over a fuel dye,” said Rep. Steube. “The RED Fuel Act removes an outdated penalty structure and lets Americans use the fuel they need to do their jobs.” Dyed diesel fuel is sold at some gas stations and is primarily intended for agricultural and off-road use. The fuel is dyed to signify that it is tax-free, since standard diesel carries a federal tax of 24.3 cents per gallon. Current law penalizes the use of dyed diesel in taxable applications at $1,000, or $10 per gallon used, whichever is greater. The RED Fuel Act would eliminate these penalties. The full text of the RED Fuel Act is available here . ###