10/15/2026
DYED DIESEL UPDATE
BAYLESS FUEL WILL CONTINUE TO ONLY SELL DYED DIESEL INTENDED FOR OFF ROAD USE AND SELL CLEAR DIESEL WITH FEDERAL AND STATE TAX INCLUDED.
IRS released updates on dyed diesel penalty relief. More information can be found online. https://www.irs.gov/newsroom/irs-provides-dyed-diesel-fuel-relief-related-to-excise-tax-following-president-trumps-executive-order
It is important to note that Pennsylvania still must take separate state action before dyed diesel can be used on public highways under this temporary relief.
State penalties can include a fine of up to $2,000, imprisonment for up to 90 days, or both. A separate civil penalty of at least $1,000 or $10 per gallon, whichever is greater, may also apply; the penalty increases for repeat violations.
IR-2026-122, Oct. 14, 2026 — The Internal Revenue Service today announced that, in response to the President’s Oct. 5, 2026, Executive Order, Emergency Tax Relief on Diesel Fuel, it will not impose a penalty when dyed diesel fuel is sold for use or used on highways nationwide.
