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Every Question About Off-Road Diesel 1024 768 Star Oilco

Every Question About Off-Road Diesel

Got questions about red dyed diesel? We have answers!

If you don’t find the answer you’re looking for, reach out to us directly and we’d be happy to help answer your questions.

Red Diesel is off-road diesel, in the United States this fuel is denoted with a red dye. The dye marks this as fuel for off-road equipment and vehicles and as such it doesn’t have road fuel taxes included in the priceThis dye takes a great deal of clear fuel to dilute so it makes it very obvious if an on-road vehicle has been using off-road untaxed fuel. Tax authorities can and do check for vehicles using off-road red diesel in on-road vehicles. They do this by using a black light to spot any residual presence of dye in the fuel as well as at key places in the engine compartment.

On-road diesel is clear or slightly green. Refineries place a green dye into diesel fuel which is obvious if fuel is freshly dispensed into a bottle to observe its color. As fuel ages this dye fades to yellow or darker colors. Part of a visual observation to inspect diesel fuel quality is to check the fuel for a “bright” appearance with the slight green dye being a giveaway that the diesel is fresh and in good condition.

Nearly all diesel has dye in it. Typically when talking about dyed diesel, we’re referring to a red dye added to off-road diesel. Off-road diesel is normally used for heating oil, construction fueling, agricultural use, and other off-road equipment not used on the highway system where fuel taxes would be required by law.

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Why is diesel dyed?

Diesel is dyed in order to denote if it has paid road tax or not. On-road diesel in the United States usually has a light green tint to it. Off-road diesel has a red dye to denote it has not paid road taxes as required by all states and the Federal government.

What is off-road diesel?

Off-road diesel is diesel fuel dyed red to show it is untaxed and available only for off-road fuel uses such as construction fueling, equipment never used on a public road, agricultural use, heating oil, boiler fuel, and other non-taxed diesel fuel uses under state and Federal fuel tax law. In Oregon, with proper paperwork, some off-road uses can buy on-road fuel with the Oregon state tax exemption.

What is farm diesel?

Farm or diesel for agricultural use is off-road diesel that is not charged on-road fuel taxes. Agricultural use fuel is a tax-exempt use of diesel fuel. If diesel is burned on a farm and can be tracked for such, taxes can be avoided. Farms are allowed to receive clear diesel without road taxes charged on it in Oregon. Often it is dyed red to denote it is tax free. In Oregon, where P.U.C. for trucks over 26,000 GVW pay a weight mile tax instead of a per gallon state road tax, some farms will track their use of clear diesel so they can file for Federal road taxes on off-road usage.

Contact Us Today To Order Your Off-Road Diesel

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All diesel sold in the United States typically has some dye in it. On-road diesel usually has a slight green tint to it. This is a dye added by either the refiner or terminal provider with the fuel. Off road diesels are dyed red to denote that the fuel is untaxed and is for use in off-road purposes only.

Solvent Red 26 and Solvent Red 164 are the allowed dyes prescribed by the United States Internal Revenue Service for marking diesel as for un-taxed off-road use only.

Off-road diesel is classified as a Class II combustible liquid by the National Fire Code. A flammable fuel is one with a flash point below 100 degrees F. Diesel’s flash point is between 126 and 205 degrees F (typically assumed to be about 160 degrees F)That classifies it as a Class II combustible.

Fuel taxes charged is the big difference between the two fuels. All on-road diesel is clear or greenish in color to denote it is both ultra-low sulfur diesel and the on-road fuel taxes associated with using it to power a highway vehicle have been paid. Dyed fuel means that fuel taxes are not paid and that the fuel can not be used to power a vehicle on a public road.

Is off-road diesel or dyed diesel high sulfur diesel?

Dyed diesel (or off-road diesel) can be high sulfur fuel. High sulfur diesel is defined as diesel fuel with over 500 parts per million of sulfur content.

Is off-road diesel or dyed diesel ultra-low sulfur diesel?

Off-road and dyed diesel fuels can be ultra-low sulfur but are not guaranteed to be. There has been a consistent push to reduce sulfur in all fuels in the United States as led by EPA regulation. In recent years, EPA standards require off-road construction and agricultural equipment to have an emissions system that allow ultra-low sulfur to operate without major problems. So today’s off-road diesel being delivered is ultra-low sulfur. If you have a tank with old stored dyed red diesel fuel in it, you can assume it has a higher than ultra-low sulfur content.

What is dyed ULSD fuel?

Dyed ULSD fuel is ultra-low sulfur diesel with a red dye in it to denote that it is for off-road or untaxed purposes only. These purposes are typically for heating oil, construction fuel, agricultural fuel, generator fuel or other off-road uses. The “ULSD” is an acronym for ultra-low sulfur diesel.

Dyed diesel can be either #1 or #2 diesel. Both fuels require a red dye in them to confirm they are untaxed and cannot be used for on road fuels.

Dyed diesel and off-road diesel can be kerosene (which crosses as #1 diesel fuel), but not necessarily. Do not assume a dyed fuel is kerosene, which is a rarer fuel. Kerosene is different than #1 diesel for one characteristic: its confirmed ability to be absorbed and taken up by a wick. All kerosene is #1 dieselNot all #1 diesel fuels are kerosene. The same goes for dyed diesels and off-road fuels. All dyed kerosene is dyed and off-road diesel. Not all dyed fuel is kerosene.

Yes, dyed diesel and off-road diesel are stove oil. Typically a #1 stove oil or #2 stove oil, similar to diesel. Historically stove oils had a slightly different set of specification concerns which is why they were called “stove oils” versus diesel. When petroleum refineries distilled crude oils to get diesel range fuels, it was less exact than it is today with hydrocracking technology. Today with both oil refinery technologies and the EPA emission regulations, the number of distillate range fuel specifications is far more consolidated in order to ensure compliance with EPA and state rules. If your heating appliance is demanding stove oil, it typically needs a #1 stove oil or #1 kerosene product. This product is expected to produce less soot and therefore to work better in a pot stove type of application. The most modern stove oil appliance in the U.S. are Monitor and Toyostove thermostatically controlled direct vent heaters.

Depends on the year of your truck, and we assume you mean red dyed diesel fuelFirst, using dyed diesel, off road diesel, or heating oil in an on-road vehicle is against the lawIf you are caught in Oregon the fine can be as big as $10,000 and the State of Oregon does aggressively pursue this type of tax avoidanceBeyond the legal use of off-road fuelTypically on the west coast dyed diesel is ultra low sulfur diesel. Which means it will not cause maintenance issues if burned in your engine.  Dependent on the age of the dyed fuel, or if it is actually a heating oil, it might be high sulfur or low sulfur fuel. If you use that in a post 2007 engine with a particulate trap it will have serious maintenance issues if you use that fuel.

Yes, dyed diesel and off-road diesel are acceptably used as heating oil. Dyed diesel and off-road diesel these days are typically ultra-low sulfur diesel. Heating oil can be low sulfur or high sulfur in content under EPA and most state laws. So heating oil sometimes cannot be dyed diesel (when used for off-road equipment or agricultural use) but dyed/off-road diesel can always be used for heating oil and conform to the necessary specification required by heating oil furnaces.

Yes! But in today’s ultra-low sulfur market, most off-road diesel is below 15 parts per million. If your equipment requires ultra-low sulfur diesel, it is a good practice to confirm that is what fuel you are getting. Some low sulfur diesel (under 500 parts per million sulfur fuel) and high sulfur diesel (over 500 parts per million sulfur) is still in the marketplace used by heating oil, boiler systems, locomotive, and marine applications.

Off-road diesel gels at cold temperatures. At colder temperatures, wax crystals begin to form and fall out of the diesel, clogging filters and gelling up the fuel. Also, the water and naturally held-in diesel will ice up and obstruct filters. This phenomenon is called diesel gelling.

All diesel fuels will gel if it gets cold enough. Both a formation of wax crystals and ice forming in your fuel will obstruct filters and take your equipment down. Rule of thumb: with no treatment your diesel fuel should operate without any issues above 20 degrees Fahrenheit. Below 20 degrees Fahrenheit, you will want to ensure your vendor is treating the fuel for winter use to ensure it will operate down to -20 degrees FahrenheitIf you are facing temperatures below that, you will want to confirm with your vendor that they are testing that fuel to operate below -20 degrees Fahrenheit.

Why does the government require diesel be dyed red?

From a informational pamphlet from the US IRS on untaxed fuel: 

“The federal government requires dyeing of untaxed diesel fuel and kerosene for two reasons. To help reduce tax evasion by identifying fuel on which excise taxes have not been paid, and to help reduce air pollution by identifying fuel not suitable for use in highway vehicles.”

Does off-road diesel go bad?

Off-road and dyed diesel do age and can go bad. All diesel fuels adhering to ASTM specification should be safe for storage up to a year without additional treatment and testing. If you are storing diesel for long term use, it is a good best practice to treat the fuel with a biocide and oxidative stabilizer to ensure that the fuel stays within specification and nothing will begin to grow in your fuel tank. The biggest enemy of long term diesel storage is water and dirt entering the fuel through a tank vent. As temperatures change a tank will breath pulling in air and moisture from outside. Ensuring there is no water in the tank and that outside contaminants can’t get into a tank are how keep your fuel within specification.

Untreated, you can assume that diesel fuel is good for a year. If treated with a biocide to prevent biological growth from growing in the tank, you can expect diesel to be good for two to three years. After two to three years, diesel begins to show age as it loses its brightness when sampled. After three years you will want to sample and test the fuel to ensure it is within specification for reliable use.

Fuel taxes vary by state and sometimes even local municipality. With off-road diesel, usually the only taxes to consider are sales taxes on the fuel. In Oregon there are no taxes on dyed off-road fuel. In Washington state there are sales taxes for dyed-diesel charged on top of the sale price of the fuel. (NOTE: If you use clear diesel in Washington state there is no sales tax as the road tax is being charged.)  If you are curious for a more in depth answer Star Oilco has a full explanation of Oregon Diesel Taxes (a unique system in the United States for local fuel tax collection of trucks over 26,000 GVW).

Yes. If you are consuming dyed diesel and are not paying for the on-road fuel taxes in Washington state, the sales tax is charged. If you use clear fuel with road taxes attached to the fuel, the sales tax is not charged. For more on Washington fuel taxes see the Washington Department of Revenue. 

Your petroleum distributor has some small taxes (under $.01) attached to the fuel they buy at the wholesale terminal level. Those taxes being the U.S. EPA Superfund cleanup and the “LUST” or Leaking Underground Storage Tank cleanup fund. Beyond that, there are no taxes (Federal, state or local municipality) on fuel used for off-road diesel in Oregon state.

In Oregon you can buy clear fuel exempt of Oregon’s state road taxes. The qualifications for using clear diesel Oregon State tax exempt are the following: 

vehicles issued a valid ODOT Motor Carrier permit or pass (weight receipt) 

vehicles issued a valid Use Fuel User emblem by the ODOT Fuels Tax Group 

vehicles registered to a US government agency, Oregon state agency, Oregon county or city, and displays a valid Oregon “E” plate 

vehicles, or farm tractors/equipment only incidentally operated on the highway as defined in ORS 319.520 

vehicles or equipment that are unlicensed and/or used exclusively on privately owned property 

What happens if I use dyed diesel in an on-road vehicle?

If you get caught in Oregon, a $10,000 a day fine can be levied. We have seen fuel tax cheats get caught repeatedly so be aware Oregon is on the look out for any amount of dye in the saddle tank of an on-road vehicle. If the fuel you use is low sulfur or high sulfur fuel and your vehicle has a particulate trap, you will have maintenance issues with the emission system of your vehicle.

Only if that pickup is dedicated to an off-road use. If you plan to ever use that truck on a public road (even to cross a street), and dyed fuel is found in that vehicle, fines up to $10,000 per occurrence can (and are) levied by state regulators. If you have a closed facility or large farm and are not registering the vehicle for on-road use (so the pickup must not leave the site), you can use off-road diesel as the vehicle’s fuel. If you have license plates and it’s permitted for on-road use, any regulator spotting dyed fuel in that truck will presume it is an on-road pickup.

Typically when checking for illegal use of dyed fuel, regulators will sample from the tank or spin the fuel filter and observe for obvious dyed fuel. If the fuel is clear (or even slightly pink) and they suspect dyed fuel was used in the vehicle, they can apply a special black light that will glow an obvious color denoting dyed fuel had been in contact with the vehicle. They will shine that light on the filter, fuel tanks, and various parts in the engine compartment that would have come into contact with the fuel. If those areas denote even a mild trace of the red-dye used in off-road diesel, they will cite the vehicle operator. There are kits sold online for filtering dye out of fuel to remove the colorThose kits will not remove enough dye to avoid detection by these lights.

Off road diesel is dyed red to show that the on-road fuel taxes are not paid or that it is a tax-free fuelThe Federal Government and State Government’s have fuel taxes for on-road fuel usage to help pay for the roads we all drive onIf you are using diesel for a non-road equipment, machinery, or heating/boiler applications the fuel taxes are exempt and the fuel is dyed to ensure it’s tax free status is immediately seenRegulators in a road side or site level inspection can also shine a black light on specific places in a vehicles system to denote if dyed fuel is being used in violation of the law as well.

In the Pacific Northwest at the current moment? Usually nothing. Heating oil is dyed diesel. Most petroleum distributors are selling the mainstream dyed diesel specification for use as heating oil in order to lower the overall cost of the fuel. There are different ASTM specifications for heating oil and dyed diesel dependent on the state you buy it in. Heating oil’s specification has wider tolerances than diesel specifications as furnaces and boilers can handle dirtier, lower quality fuels than off-road equipment with a particulate trap. Heating oil is always a diesel fuel, but sometimes dyed diesel for off-road equipment has a different specification than heating oil. For example, in Oregon a 5% biodiesel or 5% renewable diesel mandate exists for any dyed diesel fuel used in off-road equipment. This biofuel mandate exempts heating oil and boilers. So heating oil can be biodiesel free but off-road diesel for equipment cannot.

Get Your Off-Road Diesel Delivered Today

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Can refrigerated trailers or “reefers” use dyed diesel even if they are attached to a truck moving it on the highway?

Yes, refrigerated trailers are off-road equipment. The diesel fueled refrigeration trailer is off-road equipment as its engine is not powering something actually driving down the road. These trailers can use any ultra-low sulfur diesel fuel (dyed or clear). If using on-road clear fuel in a refrigerated trailer, if you track and keep proof of the on-road fuel being used in the off-road piece of equipment, you can file for those fuel taxes back. Proof is required though so consult with your CPA or accountant.

The first step is to set up an account with Star Oilco. It’s easy to pay through a simple credit application or by placing a credit card on the account. Oregon and Washington are highly regulated when it comes to fuels such as diesel. We need to account for who is ordering and getting fuel (yes, Oregon even checks sometimes as the DEQ tracks every gallon of diesel moving into the state). Determine if you want a loaner tank onsite or a keep-full service plan. Star Oilco will deliver bulk or wet hose fuel your job site on a regular schedule. We are here to make it as easy as possible for you to focus on your project, not fueling. Let us know what you want: we will keep it simple and make it easy for you.

If you are storing off-road or dyed diesel for longer than six months you will want to make sure it is stabalized. Star Oilco recommends Valvtect Plus Six as the fuel additive you want to useOur recommended fuel additive is a fuel microbiocide with stability additives made for diesel long term storageThis kills and prevents the growth of biological “hum-bugs” in your tankBacteria, yeast, and algae can grow in your fuel tank. Usually in a small amount of water that collects in the bottom of the fuel storage tank (be it the bulk tank you  fuel out of or the saddle tank on your equipment).

There are several ways to do this.  What you will want to do varies based on how much water and what it is in.  If you are dealing with a large bulk fuel tank you want to definitely pump the tank bottom to get the water out.  If you are seeing extreme biological activity (Hum-Bug growing in your tank) you want to do a kill dose treatment on that tank. It might not be a bad idea to also spend a few thousand dollars to have a professional tank cleaning company come in and manually clean the tank prior to adding the kill dose to kill anything growing in your tankIf it’s the tank on your equipment usually the best route is to drain the tank, flush the tank, and also put a kill dose of  a fuel microbiocide to make sure nothing continues to growIf you want to talk to someone feel free to call Star Oilco, you do not need to be our customer for us to walk through some solutions you can do yourself. 

There are a very few rural gas stations that provide this fuel.  Some Pacific Pride or CFN cardlock locations also have pump available for this fuel.  The easiest way to acquire this fuel is through a fuel company.  Star Oilco is one such company that can deliver dyed diesel for it’s customers, or provide cardlock cards for its customers.

Contact Us Today To Get Your Off-Road Diesel Delivered To Your Location

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Fuel Market Report: June 2nd – June 8th, 2024 1024 683 Star Oilco

Fuel Market Report: June 2nd – June 8th, 2024

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Oregon Fuel Price Variance

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Fuel Market News

Fuel prices within the market have continued to drop, as rack prices for gasoline dropped $0.14 this week, with diesel only dropping $0.02 for B5 and bumping up $0.03 for B20. With the RFS in Portland, demand for B20 is increasing, many companies are running a R80/B20 blend of fuel (80% Renewable Diesel, 20% Biodiesel). Allocation for Renewable diesel is still not where it needs to be for the city to be able to supply it at the volume that will be needed in the near future. B5 demand will soon phase out and B20 will become the predominant fuel within the Portland area.

City of Portland began their fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it. To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

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Important Note: Per the City Of Portland, “Distributors in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they distribute beginning on May 15, 2024. All diesel fuel distributed to retail stations, non-retail dealers, or wholesale purchaser-consumers must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on May 15, 2026, and 99% on May 15, 2030”.

 

Crude oil is trading below $80 for the seventh week straight, at a current price of $78.25/barrel, $4.82 higher than last week, as oil prices trended upward, this past week.

 

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $78.25 per barrel compared to $73.43 last week and $79 a year ago.

It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above and other factors regionally. Additionally, prices may vary by specific regions within Oregon and Washington. For the most precise and up-to-date information on fuel prices and the causes for these price changes within your area, use the links below for AAA & GasBuddy.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

https://gasprices.aaa.com/?state=OR

Join the Fuel Market Report newsletter for your weekly fill of updates!

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Fuel Market Report: May 26th – June 1st, 2024 1024 683 Star Oilco

Fuel Market Report: May 26th – June 1st, 2024

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Oregon Fuel Price Variance

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Fuel Market News

Prices are dropping across the market. Rack averages for E10 have dropped $0.19 this past week, while rack averages for B5 dropped $0.04 and B20 dropped $0.01. A major reason for this is the significant drop in crude oil prices as crude dropped $6.40 this week, its largest drop in 6 months. We can expect gas prices to begin to climb back up slightly as the demand for gasoline should be increasing soon as the summer travel trends begin. The EIA reported last week that US Diesel demand hit a 26-year low in March, dating back to 1998. Renewable fuel production and green infrastructure becoming more prominent is likely a major contributor to the diesel demand drop.

 

City of Portland began their fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it. To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

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Important Note: Per the City Of Portland, “Distributors in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they distribute beginning on May 15, 2024. All diesel fuel distributed to retail stations, non-retail dealers, or wholesale purchaser-consumers must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on May 15, 2026, and 99% on May 15, 2030”.

 

Crude oil is trading below $80 for the sixth week straight, at a current price of $73.43/barrel, $6.40 lower than last week, as oil prices trended down, for the first time in three weeks.

 

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxesa helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $73.43 per barrel compared to $79.83 last week and $80 a year ago.

It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above and other factors regionally. Additionally, prices may vary by specific regions within Oregon and Washington. For the most precise and up-to-date information on fuel prices and the causes for these price changes within your area, use the links below for AAA & GasBuddy.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

https://gasprices.aaa.com/?state=OR

Join the Fuel Market Report newsletter for your weekly fill of updates!

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Biofuels industry exceeds EPA’s expectations 1024 618 Star Oilco

Biofuels industry exceeds EPA’s expectations

Biofuels Industry Surpasses Expectations with a Massive Production Rise

Based on the data, biomass-based diesel production has increased massively in the United States, including biodiesel, renewable diesel, sustainable aviation fuel, and heating oil. Biomass-based diesel was expected to produce 4 billion gallons in 2023. Biofuel production and use increased by one billion gallons from last year to this year, which is a big jump. As a result of this achievement, a breakthrough has been achieved. The industry has surpassed what the EPA once thought was impossible with the development of advanced biofuels derived from sustainable sources.

So the real question is, what if we don’t choose biodiesel or renewable diesel over petroleum diesel for our diesel engines?

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  • Biofuel production soared in 2023, exceeding EPA goals.

  • US biomass-based diesel production (biodiesel, renewable diesel, SAF, heating oil) reached 4 billion gallons.

  • Biofuel production and use jumped by 1 billion gallons year-over-year.

Clean Fuel Industry Beats Regulations in Decarbonization Push

While the Clean Fuels Alliance urged the EPA to set even more ambitious goals, like increasing biomass-based diesel production by 500 million gallons a year over the next three years, the EPA has taken a more conservative approach. Regulations aren’t keeping up with the industry, but it’s not waiting for them. Clean fuels are becoming more accessible and heavy-duty transportation fuels used by aviation and maritime are getting decarbonized. The industry has shown its ability to grow quickly and sustainably thanks to this collaborative effort.

  • Clean Fuels Alliance pushed for aggressive EPA goals: 500 million gallons annual increase in biomass-based diesel production for 3 years.

  • EPA’s finalized standards took a cautious approach.

  • Oil and gas producers, refiners, distributors, and retailers don’t have to wait for strict regulations to act (producers, refiners, distributors, retailers).
  • Industry collaboration demonstrates the potential for rapid, sustainable growth.

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Despite this year’s achievements, the Clean Fuels Alliance remains focused on the future. There’s so much potential in sustainable biofuels that we think the EPA hasn’t tapped into yet. Supporting biodiesel, renewable diesel, and SAF production can help achieve clean energy progress.

In reality, why wouldn’t we make the switch to lower our carbon emissions today?

JOIN THE FUEL MARKET REPORT NEWSLETTER FOR YOUR WEEKLY FILL OF UPDATES!

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Every Question We Have Been Asked About Renewable Diesel 1024 696 Star Oilco

Every Question We Have Been Asked About Renewable Diesel

Renewable Diesel Frequently Asked Questions (FAQ)

Every Question we have been asked about Renewable Diesel

What is renewable diesel?

Renewable diesel is a synthetic diesel fuel, known for it’s lower CO2 characteristics, typically seeing purity and real world performance response superior to petroleum diesel fuel.  Renewable diesel is a next generation hydrocarbon diesel biofuel made by either the Fischer-Tropsch or Hydrogenation processes.

Hydrogenated renewable diesel is made by taking fats, oils, and greases by use of a hydro-treater.  The biomass based oil or fat is cracked and reformed in the presence of hydrogen and  catalyst forming a hydrocarbon diesel molecule.

Fischer-Tropsch renewable diesel is used by converting any btu dense feedstock (wood waste, woody biomass, municipal garbage, coal, and an endless list of low value waste products into syngas, then converting this into a wax that is reformed into hydrocarbon diesel.

Can Renewable Diesel be used as Heating Oil?

Yes.  Renewable Diesel is a synthetic hydrocarbon diesel fuel.  It can be used interchangeably with petroleum diesel products of similar grade. Heating Oil is typically number 2 diesel which is the same specification as Dyed R99 Renewable Diesel (or blends of Renewable Diesel with petroleum diesel).   Star Oilco now offers R99 Heating Oil delivered in the Portland metro region area of Oregon.

Most modern oil heat appliances use a Becket Burner.  For more on heating fuel compatibility with oil furnaces and oil burning appliance please see “Alternative Fuels and Becket Burners” for more information.

Why do people use renewable diesel over petroleum diesel?

Fleet managers operating R99 Renewable Diesel report a lower mechanical cost of operation using the fuel.  Beyond the immediate benefit of R99 cutting CO2 emissions by half or more, fleets experience performance benefits from the fuel.  The big savings are seen the the performance of Tier 4 Emission systems on modern diesel seeing far less wear of the Diesel Particulate Filter system as well as far fewer regenerations of the system.  Additionally Renewable Diesel is a very clean and dry diesel fuel improving the storage stability, field operation, and general predictability of the fuel’s performance.

How do I know Renewable Diesel is being sold at a retail location?

Renewable Diesel is a hydrocarbon diesel that meets the specification for petroleum diesel known as ASTM D975 specification.  This means currently R99 can be readily blended and sold with petroleum diesel without a disclosure.  The US Federal Trade Commission and local state Weights and Measures have rules for retail pump labeling.  Blend percentages of biomass based diesel must be labeled especially if being advertised.  As R99 Renewable Diesel has a higher value and is sought out by many consumers though usually it is disclosed.  The pump labeling for R99 Renewable Diesel typically looks like the below.

R99 Renewable Diesel fuel dispenser label

What is renewable diesel made of?

Renewable diesel can be made from a host of things, usually a low value waste product. The most common feedstock used currently is waste vegetable oil, wastes from animal rendering, and other biologically derived oils. Processes using bio-oils are following a Hydrogenation process to turn low value waste oils into high value diesel and jet fuel.

Chevron Renewable Energy Group and Diamond Green Diesel (Diamond Green is in a joint venture with Valero) are the largest producer of renewable diesel with their REG Ultra Clean Diesel product in the United States. Neste is the largest producer of renewable diesel internationally, with its “Neste My” product.  being the two largest producers of low CO2 bio-oil derived renewable diesel fuels.

Major petroleum refiners have also turned around existing petroleum refineries into Renewable Diesel Refineries to produce this in demand low CO2 fuel. HF Sinclair , Marathon, Phillips 66, and Montana Renewables. There are quite a few newer Renewable Diesel projects planned and in progress around the United States as well as in the Pacific Northwest.

Other refiners of renewable diesel (on a much smaller scale of production) are using a Fischer-Tropsch process with wood waste, sorted higher grade municipal garbage, and other high btu value carbon based waste products.  Many expect this to technology to be the future of all diesel and jet fuel refining turning refuse into fungible low carbon fuel.

What is renewable hydrocarbon diesel?

Renewable hydrocarbon diesel is a synthetic diesel fuel made from non-petroleum feedstocks like vegetable oil, animal fats, municipal waste, agricultural biomass, and woody biomass. It is characterized by having a low CO2 and renewable resource for its feedstock and is made without crude petroleum, coal, or natural gas as a direct feedstock input in the refining process.

How do they make renewable diesel?

Renewable diesel is made by several processes. If you are buying renewable diesel, it is probably from a Hydrogenation process used by Renewable Energy Group and Neste for their products. Other smaller volume producers are using a Fischer-Tropsch process or Fast Pyrolysis. Both processes involve taking energy dense molecules, cracking those molecules under heat and pressure, then reforming them in the presence of a catalyst and added hydrogen, which forms a renewable diesel molecule.

Is renewable diesel a lower carbon fuel compared to petroleum diesel?

Yes, to this point all renewable diesel made from renewable feedstocks have appeared to be a lower CO2 fuel compared to petroleum diesels. The California Air Research Board in particular has done research on this in depth.

The low CO2 lifecycle emissions of Renewable Diesel also is tracked closely and supervised by California’s Low Carbon Fuel Standard, Washington’s Low Carbon Fuel Standard, and Oregon’s Clean Fuels Program. The highest value markets for low CO2 fuels in the United States are California and Oregon, which both have mechanisms that track and price the CO2 intensity of diesel fuels as well as the sustainable lower CO2 substitutes and blend-stocks that can go in those diesels. They track, rate, and determine the carbon intensity of the fuels providing a neutral and scientifically defensible number for CO2 reduction.

Is renewable diesel available in Oregon?

Renewable diesel is readily available for delivery from Star Oilco throughout the Pacific Northwest via 10,000 gallon volumes of bulk delivery.   Star Oilco is also offering bulk delivery of any size and mobile onsite fueling service within 100 miles of the Portland, Oregon market.

Star Oilco has R99 Renewable Diesel available with a Star Oilco CFN Cardlock card in Portland, Oregon.

What is the difference between biodiesel and renewable diesel?

Biodiesel and renewable diesel are very different fuels made with very different processes. In a nutshell, biodiesel is made with a simple chemical reaction that turns vegetable and animal fats into fuel. Renewable diesel is made from far more complicated process where vegetable and animal fats (as well as other feedstocks) are cracked on a molecular level and built back into synthetic diesel fuel.

What is the difference between renewable diesel and Sustainable Aviation Fuel?

The difference between the fuels is the specific gravity and general specification for what the fuel is used for. Jet fuel, or Sustainable Aviation Fuel, and on-road diesel fuel are different fuels and therefore have different specifications. Renewable diesel is typically referring to a #2 diesel specification for on road diesel use.

Sustainable Aviation Fuel or “SAF” is typically referring to “Jet A” or “JP8” jet fuel specification for fuel. This is a #1 diesel range fuel with use and handling requirements that are far more stringent than for on-road or off-road diesel fuels. Renewable jet fuel can be used as a kerosene or #1 diesel fuel but renewable diesel cannot be used as a jet fuel.

Where do I buy renewable diesel in Oregon or Washington?

Renewable Diesel is currently available for bulk delivery and mobile onsite fueling. It will soon be offered at commercial cardlock in the Portland area. It is being sold as R99 and as Ultra Clean Diesel, which is a mixture of biodiesel, renewable diesel, and petroleum diesel.

What is R99?

R99 stands for 99% renewable diesel and 1% petroleum diesel.  Federal rules over alternative diesel fuels made fuels requires that manufacturers of non-petroleum derived diesel fuels must blend a minimum 1% petroleum with the fuel to generate a Renewable Industry Number or “RIN” under the US Federal Renewable Fuel Standard. Additionally there are other incentives that require a “blender of record” to receive these tax credits.

Is renewable diesel being made in Oregon?

As of Spring 2022, renewable diesel is not being manufactured in Oregon. There is a major projects underway, Next Renewable Fuels in Port Westward, Oregon.

What is renewable diesel made from?

Renewable diesel can be made from many energy dense carbon based material.  By volume of produced product sold in the United States, vegetable oils and animal fat-based wastes are the most common feedstock. Woody biomass, agricultural wastes, and sorted municipal wastes are also sources for renewable diesel production.

Is renewable diesel made from palm oil?

Palm oil can be used as a feedstock for renewable diesel. There are producers who use palm oil as a feedstock. In the United States, feedstocks and carbon intensity are tracked closely under both Oregon and California’s fuel programs.  You can determine if a supplier is using palm oil as a feedstock through these regulated pathways.

How much does renewable diesel cost?

This is a tough question to answer given there are several markets intersecting.  From the feedstocks to the market demand for the finished product as well as both California and Oregon’s Clean Fuel Standards which place a price on the CO2 intensity of the fuel which reduces the cost of the fuel if consumed in Oregon and California.

It has consistently been trending between the same cost and over $1 a gallon higher than petroleum diesel depending on the state, you buy renewable diesel in. In California, renewable diesel is very close to petroleum diesel depending on the value of CO2 credits for lower-carbon fuels. In Oregon, it has consistently been between $.05 to $.80 a gallon higher than diesel also depending on the value of CO2 abatement associated with the fuel and what these carbon credits are trading for.

When petroleum diesel costs are high Renewable Diesel tends to be more competitive with petroleum diesel.  When petroleum diesel is below $3 a gallon the cost of Renewable Diesel by comparison is usually higher unless CO2 credits are in higher than normal demand for Clean Fuels Program demands.

Can you mix petroleum diesel and renewable diesel?

Yes. Renewable diesel and petroleum diesel can be blended in any mixture without worry. They are drop-in substitutes for each other in your fleet’s use.  Renewable Diesel is a drop-in fuel. It is a hydrocarbon diesel that will work mixed with diesel or biodiesel blends of petroleum diesel.

Learn more about renewable diesel and how it can benefit your operations. Contact us today.

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Fuel Market Report: May 19th – May 25th, 2024 1024 683 Star Oilco

Fuel Market Report: May 19th – May 25th, 2024

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Oregon Fuel Price Variance

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Fuel Market News

The fuel market experienced minimal price variances this past week, as diesel prices hardly moved and gas prices surprisingly fell $0.20 on the wholesale market. The retail market did not see as steep of a decline for gasoline as the retail average in Oregon dropped only $0.06. It is not much of a surprise that the market didn’t move much last week, as many were out for the week for Memorial Day. However, it is surprising that with the increased travel trends, gas prices did not jump.

 

City of Portland began their fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it. To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

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Important Note: Per the City Of Portland, “Distributors in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they distribute beginning on May 15, 2024. All diesel fuel distributed to retail stations, non-retail dealers, or wholesale purchaser-consumers must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on May 15, 2026, and 99% on May 15, 2030”.

 

Crude oil is trading below $80 for the fourth week straight, at a current price of $79.83/barrel, $0.51 higher than last week, as oil prices trended upward, for the second time in four weeks.

 

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $79.83 per barrel compared to $79.32 last week and $81 a year ago.

It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above and other factors regionally. Additionally, prices may vary by specific regions within Oregon and Washington. For the most precise and up-to-date information on fuel prices and the causes for these price changes within your area, use the links below for AAA & GasBuddy.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

https://gasprices.aaa.com/?state=OR

Join the Fuel Market Report newsletter for your weekly fill of updates!

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Diesel Quality Matters When Filling Your Tank 1024 512 Star Oilco

Diesel Quality Matters When Filling Your Tank

There are different grades of diesel fuel or diesel quality just like gasoline, and they can have a big impact on your vehicle’s performance, efficiency, and longevity. Quality diesel offers substantial benefits for your hard-working trucks, even when price is a major factor.

Clean Diesel: A Boost for Your Engine and the Environment

High-quality fuel goes beyond just powering your engine, unlike standard diesel. Like TOP TIER gasoline, premium diesel has enhanced cleaning additives. As a result, you’ll see a range of benefits that directly impact your vehicle’s performance, efficiency, and even your wallet. Let’s take a look at clean diesel’s advantages.

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  • Improved Performance: Clean fuel ignites readily, giving your engine a noticeable power boost and smoother operation.

  • Enhanced Fuel Economy: Every drop counts! Clean diesel allows you to travel farther on a single tank.

  • Reduced Emissions: Be eco-friendly – cleaner burning translates to less smoke and pollutants in the air.

  • Extended Engine Life: Protect your investment! High-quality diesel reduces wear and tear on your engine components, saving you money on repairs down the road.

Understanding Diesel Quality

Two key factors determine diesel quality: the cetane number and the sulfur content. The cetane number tells you how easily fuel ignites, like a spark plug’s rating. Higher cetane numbers mean smoother starts, less knocking, and better performance – essential for modern diesel engines that typically need 40 or higher cetane ratings. Sulfur, however, can damage emissions systems and engine components if too much is used as a lubricant. These days, sulfur content is capped at ultra-low levels (Ultra-Low Sulfur Diesel or ULSD), ensuring cleaner engines.

  • Cetane Number: This number indicates how easily fuel ignites. Higher cetane numbers mean smoother starts, less engine knocking, and better overall performance. Modern diesel engines typically require a 40 cetane rating.

  • Sulfur Content: Sulfur acts as a lubricant in diesel fuel, but excessive levels can harm emissions systems and engine components. Modern regulations limit sulfur content to ultra-low levels (Ultra-Low Sulfur Diesel or ULSD).
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Beyond the Pump: The Long-Term Value of High-Quality Diesel

While price at the pump is important, don’t let it overshadow high-quality diesel’s long-term value. Clean fuel isn’t just about saving money; it’s about keeping your car healthy. Clean diesel unlocks a bunch of benefits: a smoother ride and more power, better fuel economy that lets you go farther on each tank, fewer emissions so you don’t have to worry about air pollution, and a longer engine life, so you don’t have to spend money on repairs. Do you want to feel the difference? The next step is to find a good diesel provider. Thanks to enhanced cleaning additives, many stations prioritize clean diesel. Discover how clean diesel can improve your vehicle’s performance, efficiency, and longevity by researching stations near you.

Imagine a scenario where cleaner diesel offered similar performance and reliability to regular diesel. What other factors might still prevent you from making the switch?

JOIN THE FUEL MARKET REPORT NEWSLETTER FOR YOUR WEEKLY FILL OF UPDATES!

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Fuel Market Report: May 12th, 2024 – May 18th, 2024 1024 683 Star Oilco

Fuel Market Report: May 12th, 2024 – May 18th, 2024

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Oregon Fuel Price Variance

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Fuel Market News

The fuel market experienced minimal price variances this past week as the wholesale market saw rack averages drop $0.05 for gasoline, $0.01 for B5 diesel, and $0.02 for B20. The retail market dropped slightly as the average price for gasoline in Oregon dropped to $4.36 while diesel averages dropped $0.04. Diesel prices have been relatively low over the last few weeks, as gasoline has lacked much consistency in its price, hovering within $0.10 of its price the weeks before. The Portland market will see an influx of B20 and R99 into supply as the City Of Portland begins phasing out petroleum diesel.

 

City of Portland began their fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it. To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

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Important Note: Per the City Of Portland, “Distributors in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they distribute beginning on May 15, 2024. All diesel fuel distributed to retail stations, nonretail dealers, or wholesale purchaser-consumers must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on May 15, 2026, and 99% on May 15, 2030”.

 

Crude oil is trading below $80 for the second week straight, at a current price of $78.12/barrel, $0.51 lower than last week, as oil prices trended downward, for the fourth straight week.

 

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $78.12 per barrel compared to $78.63 last week and $81 a year ago.

It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above and other factors regionally. Additionally, prices may vary by specific regions within Oregon and Washington. For the most precise and up-to-date information on fuel prices and the causes for these price changes within your area, use the links below for AAA & GasBuddy.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

https://gasprices.aaa.com/?state=OR

Join the Fuel Market Report newsletter for your weekly fill of updates!

refuel-equipment-star-oilco-portland-or
Fuel Market Report: May 5th, 2024 – May 11th, 2024 1024 683 Star Oilco

Fuel Market Report: May 5th, 2024 – May 11th, 2024

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Oregon Fuel Price Variance

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Fuel Market News

The fuel market experienced downward price fluctuation, as two-thirds of the country experienced price drops at the pump. This has largely been due to the falling price of crude oil as it is below $80 for the second week straight. In Oregon, wholesale gasoline prices dropped $0.15, while diesel prices $0.08. We saw this trickle down to the retail pumps as prices dropped $0.07 for gasoline and $0.03 for diesel.

 

A few factors that could affect the fuel market as we roll into summer are wildfires across the country as they are more common in the summer months, increased demand for gasoline, and increased travel trends.

 

City of Portland began their fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it. To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing book an appointment with one of our fuel market analysts.

Important Note: Per the City Of Portland, “Distributors in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they distribute beginning on May 15, 2024. All diesel fuel distributed to retail stations, nonretail dealers, or wholesale purchaser-consumers must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on May 15, 2026, and 99% on May 15, 2030”.

Crude oil is trading below $80 for the second week straight, at a current price of $78.12/barrel, $0.51 lower than last week, as oil prices trended downward, for the fourth straight week.

 

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $78.12 per barrel compared to $78.63 last week and $81 a year ago.

It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above and other factors regionally. Additionally, prices may vary by specific regions within Oregon and Washington. For the most precise and up-to-date information on fuel prices and the causes for these price changes within your area, use the links below for AAA & GasBuddy.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

https://gasprices.aaa.com/?state=OR

Join the Fuel Market Report newsletter for your weekly fill of updates!

refuel-equipment-star-oilco-portland-or
Fuel Market Report: April 28th, 2024 – May 4th, 2024 1024 683 Star Oilco

Fuel Market Report: April 28th, 2024 – May 4th, 2024

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Oregon Fuel Price Variance

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Fuel Market News

The fuel market experienced minimal price variances this week. Gasoline prices on the wholesale market dropped $0.08 but did not trickle down as the retail market only dropped $0.03 for gasoline. Diesel prices dropped $0.05 on the wholesale market while the retail market only dropped $0.02. Although price variances were minimal, the fuel market of Portland experienced a generational change in the past weeks as the City of Portland began their fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will likely lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it. To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing book an appointment with one of our fuel market analysts.

 

Important Note: Per the City Of Portland, “Distributors in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they distribute beginning on May 15, 2024. All diesel fuel distributed to retail stations, nonretail dealers, or wholesale purchaser-consumers must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on May 15, 2026, and 99% on May 15, 2030”.

 

Crude oil is trading below $80 for the first time in 6 weeks, at a current price of $78.63/barrel. This is $3.26 lower than last week, as oil prices trended downward, for the second week in a row.

 

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $78.63 per barrel compared to $81.89 last week and $84 a year ago.

It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above and other factors regionally. Additionally, prices may vary by specific regions within Oregon and Washington. For the most precise and up-to-date information on fuel prices and the causes for these price changes within your area, use the links below for AAA & GasBuddy.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

https://gasprices.aaa.com/?state=OR

Join the Fuel Market Report newsletter for your weekly fill of updates!