State suspends enforcement of dyed fuel for some vehicles

Montana is temporarily expanding the usage of dyed diesel fuels for commercial vehicles engaged in work related to agriculture and logging. The expansion will not apply to noncommercial vehicles, like passenger cars and trucks.

The move comes after President Donald Trump announced a federal executive order allowing for wider use of dyed diesel. It does not change individual state taxes and Trump has said he issued the order to help ease soaring fuel prices.

Dyed diesel fuel is untaxed federally and allowed for off-road usage only.

The executive order, which was issued by Montana Lt. Gov. Kristen Juras, currently the acting governor as Gov. Greg Gianforte is not in the country, says it’s being issued due to “recent global events” that have disrupted the fuel supply chain.

“Uninterrupted operation of commercial motor vehicles engaged in agricultural and timber-related transport is necessary to maintain economic stability and support Montana’s resource-dependent communities during this emergency period,” the order states.

Dyed fuel is not sold at all gas stations and usually retails for around $1 per gallon cheaper than other diesel because it’s tax-exempt. Those taxes, state and federal, often go toward transportation projects, but since dyed diesel is used in vehicles that do not travel on roads, they’re exempt from paying those taxes.

The fuel is dyed so law enforcement can test for vehicles illegally using the fuel on roadways. There are penalties associated with using the fuel against its intended purpose which include fines and, on the third offense, the possibility of jail time.

It’s also not an uncommon offense, Montana Department of Transportation spokesperson Charity Burns said.

“Violations are mostly found in pickups, rather than large commercial motor vehicles,” Burns wrote in an email. Motor Carrier Services Officers enforce the law through probable cause stops, tips, and visual monitoring of dyed fuel pumps.

The order is good for 45 days and ends on Nov. 23. Farm advocacy organizations in other states have wondered about traces of dye in their fuel after the period ends.

“Montana farmers, ranchers, and timber industry workers are feeling the squeeze at the gas pump,” Gov. Greg Gianforte said in a press release. “This executive order will help bring relief for transporting essential goods including agricultural commodities, livestock feed, and timber products.”