Spotlight on…Dyed Diesel Crime

Most gasoline and diesel fuel is purchased by businesses and private citizens for use on public highways.  Texas’ motor fuels tax rate, as set by the Texas Legislature, is 20 cents per gallon. In fiscal 2011, the motor fuels tax was the state’s third-largest source of tax revenue, at $3.1 billion. Texas allocates most of this revenue to the state highway fund.

The motor fuel tax is paid early in the supply chain, by distributors who purchase fuel from terminal operators.  Distributors pay the tax to the terminal operators who remit it to the Comptroller’s office. Distributors recover this cost by passing it along as part of the sales price to retailers, who in turn recover their cost by passing it along to consumers.