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Originally Posted by The Beard
It's one of those bullshit gray-areas as far as the law is concerned and prone to 'reasonable person' tests in the event of an accident. Good luck finding a definitive statement from your state transit authority.
Roadside is a different story with it coming down to the viewpoint of the police present. I know of a few people that have had dramas with highway police over (petrol) jerry cans on the outside of the car. Diesel seems to be tolerated, but petrol is deemed to be a dangerous good as is subject to all the considerations of transporting a dangerous good.
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Diesel is a combustible liquid and not a flammable liquid, meaning it technically comes under hazardous materials rather than dangerous materials - this is why it is overlooked by authorities... It is still covered by the Flammable & Combustible Liquid charter for storage and transport but has separate guidelines...