If you have ever called about getting diesel fuel delivered, you were probably asked whether you wanted regular diesel or were interested in hearing about coloured diesel prices. There is no real difference between the two since one just has coloured dye added to it. Both will effectively operate any equipment that calls for diesel fuel. Why then, are coloured diesel prices lower and why can’t you use this type for everything? The reason has to do with taxes. The Fuel Tax Act allows for the use of fuel that is tax exempt, and the dye is needed to tell whether the fuel has been taxed or not. The price is lower on coloured diesel because there aren’t any fuel taxes added onto it.
How can you take advantage of coloured diesel prices and how can you use this type of fuel? The easier question is what you cannot use it for – namely licenced motor vehicles, recreational vehicles, and personal watercraft. What you can use it for is pretty much anything else. Examples include generating electricity, fuel for heating, fuel for cooking, fuel for lighting, farm equipment, forestry equipment, mining equipment, and commercial marine vessels. There are many rules involved regarding coloured diesel prices, including penalties and fines for misuse, improper storage and labeling, and mixing fuels.
If you are interested in taking advantage of coloured diesel prices for allowable uses, call us at Collingwood Fuels for delivery. We will be happy to help you determine if your use is suitable. We also provide fuel tank installation services if you haven’t dealt with bulk fuels before. We have proudly served the Collingwood and Wasaga Beach, Ontario area for more than 36 years, and we encourage you to call us with any questions.