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Red dyed fuel is untaxed. Getting caught with it in your tank (unlikely) could be a big problem. It's basically the same thing as HHF - home heating fuel. It will work fine in your car.
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1984 300Sd 210k
Former cars:
1984 300D 445k (!!) (Strider) Original (and not rebuilt) engine and transmission. Currently running on V80 ( 80% vegetable oil, 20% petroleum products). Actually not, taking a WVO break.
1993 300d 2.5 275k. Current 120/day commuter
1981 300SD 188k (Hans) Killed by a deer
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