It works fine, but no road tax is paid on it. They dye non-highway fuel so that they can tell easily what you're using.
If they catch you with dyed fuel in your tank (it will stain the filter media in your fuel filter too) and your vehicle doesn't say "John Deere" on the side, the fine you will receive will make you rue the day you decided to run heating oil in your car.
Not sure what they'd do if you started running homemade biodiesel in your car, but you probably wouldn't run it straight so the tax man would still get most of his.
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