Understand Diesel Taxes: Off-Road Diesel Can Save Your Business Money!

Fuel is one of the largest operational expenses for construction companies, fleet operators, and businesses that rely on commercial vehicles. However, many of those same businesses don’t realize that not all diesel is taxed the same. If you’re using the wrong type for the wrong application, you could be leaving thousands of dollars on the table every year due to taxes you may not actually be required to pay.

Off-road diesel is a legal, lower-cost fuel option for companies running non-highway equipment like excavators, bulldozers, generators, or agricultural machinery. The only difference? Taxes. Specifically, the road-use taxes that you’re not on the hook for.

What Is Off-Road Diesel?

Off-road diesel (also called ‘dyed diesel’ or ‘red diesel’) is chemically identical to on-road diesel fuel. The difference lies in its use and its tax status. On-road diesel is taxed for highway use. Off-road diesel is exempt from those highway taxes because it’s not used on public roads. Instead, it’s dyed red and regulated for use in:

Construction equipment
Agricultural and forestry machines
Generators and compressors
Industrial machinery
Some municipal and utility vehicles

If your equipment never touches the highway, you don’t need to pay for highway maintenance. Off-road diesel gives you a direct way to lower your fuel bill!

The Real Savings Add Up

If your operation runs thousands of gallons per month, saving 40-50 cents per gallon isn’t merely a ‘nice bonus’… it’s actually a major strategic advantage. That fuel tax difference means more working capital to cover increasing costs in other areas, like equipment, insurance, or materials.

In Georgia, for example, the effective 2025 state fuel tax alone is 37.1 cents per gallon (and it’s gone up every year for a decade). When you add in federal taxes and local levies, that number can approach 50+ cents per gallon of additional costs for on-road fuel.

Do you plan to use a 1,000 gallon diesel tank over a month’s work on the jobsite? You could save 500 bucks if you make sure it’s the right stuff. With tariffs pushing up the price of imported machines and components, anywhere you can cut unnecessary spend matters.

Anyone who wants to compare current costs to local rates needs only reach out to a local fuel supplier for expert advice. At Whatley Oil, we supply competitive diesel fuel prices throughout southern and western Georgia and eastern Alabama, with options for bulk delivery and on-site fueling. Our team is ready to help you analyze your fuel usage and determine if off-road diesel is legal for your operation.

Can You Use Off-Road Diesel?

Before you make the switch, it’s important to be clear on eligibility. Don’t mess around with off-road fuel for on-road vehicles… You can’t use dyed diesel in any vehicle that drives on public roads. Doing so is a violation of state and federal tax law, and if you’re caught with the wrong stuff in the tank, penalties can be stiff.

But if you’re fueling machines or generators that stay on-site, you’re likely in the clear. When in doubt, Whatley Oil can help you sort out your options. We’ve been working with contractors, municipal buyers, and fleet managers across Georgia and Alabama for decades. We know what’s allowed — and what’s smart.

Where to Get Off-Road Diesel in GA & AL

We’ll be straight — call us up. We make it easy to fuel your operation with reliable off road diesel fuel delivery to businesses across Georgia and Alabama and transparent pricing. Whether you need…

Jobsite deliveries for construction equipment
Bulk tank setups for remote fueling
Or help understanding the difference between on road and off road diesel fuel

…we’re here to make sure you’re running the right fuel at the right price.

Cut Taxes, Not Corners

If you're still using taxed on-road diesel for off-road equipment, you're giving your margins away. Let Whatley Oil help you take control of your fuel spend and explore off-road options that are fully legal, compliant, and cost-effective.