This dye can be easily hydrolyzed with acids, splitting off the acetal group responsible for its solubility in nonpolar solvents, and yielding a water-soluble form which is easy to extract to water.
Like a similar methyl orange dye, it changes color to red in acidic pH.
It can be easily detected in the fuel at levels as low as 0.3 ppm by extraction to a diluted hydrochloric acid, allowing detection of the red diesel added into motor diesel in amounts as low as 2-3%.
Solvent Yellow 124 is intended to be difficult to remove from the fuel in an economical way.
The UK government expressed concerns about the possibility of "laundering" the dye out of "illicit" fuel, hampering the detection.