IRS Suspends Red Diesel Penalties

On October 14, 2026, the Internal Revenue Service (IRS) announced temporary relief from federal penalties for using red-dyed diesel fuel on public highways.

The relief applies nationwide from October 1 through December 31, 2026, following a presidential executive order issued on October 5.

During this period, the IRS will not impose federal excise tax penalties for selling or using dyed diesel fuel on public highways.

The agency also announced a temporary suspension of federal roadside fuel inspections conducted by IRS fuel compliance officers.

!What This Means for CDL Drivers

Truck drivers and owner-operators can use red-dyed diesel without federal fuel tax penalties during the relief period.

However, state fuel taxes and penalties may still apply. The underlying federal fuel tax has not been permanently eliminated.

Drivers should check state requirements before using dyed diesel.