Why is No. 2 Fuel oil colored red?

No. 2 Fuel oil is colored red primarily due to a dye that is added for tax purposes. In many jurisdictions, this red dye signifies that the fuel has not been subjected to federal excise tax. The intention behind this regulation is to prevent the misuse of fuel that is intended for off-road or non-highway use, such as for heating and industrial purposes, by ensuring that it is easily identifiable. By coloring the oil red, officials and consumers alike can distinguish it from on-road diesel fuel, which is subject to higher taxes. This system helps enforce tax compliance while also helping to prevent fraud in the fuel market. The other options do not accurately reflect the reason for the coloring of No. 2 Fuel oil in a regulatory or practical sense.