How Much the Switch to ‘Dyed Diesel’ Could Save Montanans
Missoula, MT (KGVO-AM News) - So how much will Montana's decision to temporarily allow certain haulers to use "red-dyed diesel" on the road cost? It depends on local fuel costs, but if you combine the waiver of both federal and state taxes, the fuel could, at least temporarily, fall back below $6 per gallon.
That's the estimate if you take the existing cost for the "taxed" diesel sold at the pump and take out the fuel taxes that are charged for the on-road approved fuel, compared with the "off-road" diesel that's exclusive to use for tractors and other off-highway use on farms, ranches, and timber operations.
Of course, the savings will also depend on what happens with the volatile global fuel market between now and late November, when the exemption expires.
Montana waives diesel rules for a limited time
President Trump signed an executive order last week to allow the sale of off-road diesel to give truckers a price break. But states actually control that decision and need to take action on their own.
Friday, Lt. Governor Kristen Juras followed Governor Gianforte's direction, granting a waiver to allow red-dyed fuel for 45 days, until November 23rd.
Calculating the savings
That could potentially save covered shippers 50 to 60 cents a gallon for the cheaper fuel normally reserved for off-road use. That total includes the federal excise tax of just over 24 cents a gallon and the Montana fuel tax of just under 30 cents a gallon.
In some states, the savings could be closer to 80 cents.
However, the waiver only includes commercial trucks, so don't expect to be running dyed fuel in your everyday pickup.
AAA Montana reports retail diesel prices dropped 2 cents a gallon already this week, hitting an average of $6.10 Tuesday morning.
LOOK: See how much gasoline cost the year you started driving
To find out more about how has the price of gas changed throughout the years, Stacker ran the numbers on the cost of a gallon of gasoline for each of the last 84 years. Using data from the Bureau of Labor Statistics (released in April 2020), we analyzed the average price for a gallon of unleaded regular gasoline from 1976 to 2020 along with the Consumer Price Index (CPI) for unleaded regular gasoline from 1937 to 1976, including the absolute and inflation-adjusted prices for each year.
Read on to explore the cost of gas over time and rediscover just how much a gallon was when you first started driving.
Gallery Credit: Sophia Crisafulli