FreightWaves Jun 27, 2026 Supply Chain

Prime Is Suing the IRS for $11 Million Over Fuel Tax It Paid on Reefer Diesel. The Same Credit It Is Fighting For Is One Small Carriers Can Claim Too.

Prime is suing the IRS for $11 million over fuel tax it paid on reefer diesel. The article notes that reefer units burn their own diesel, meaning operators pay for two fuel burns on every load: one for the truck and one for the refrigeration unit.

Why this matters to buyers

The lawsuit highlights a specific cost structure for refrigerated freight, where the diesel for the refrigeration unit is a separate fuel burn. The outcome could potentially influence cost structures or tax credits related to refrigerated transport.

Recommended buyer actions

  • Review contracts and cost models for refrigerated freight to understand how fuel for the reefer unit is currently accounted for.

Original source context

A reefer unit burns its own diesel. Anyone who runs refrigerated freight knows this, because they are paying for two fuel burns on every load: the diesel that moves the truck down the road, and the separate diesel that runs the refrigeration unit on the trailer keeping the freight cold. Both come out of the […] The post Prime Is Suing the IRS for $11 Million Over Fuel Tax It Paid on Reefer Diesel. The Same Credit It Is Fighting For Is One Small Carriers Can Claim Too. appeared first on FreightWaves.

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