As you may of heard from the 1st April 2022 many sectors will no longer be able to use red diesel, Rebated bio-diesel, Bio Blends and fuel substitutes across a variety of applications. It will be illegal to put red diesel into vehicle and machinery fuel tanks in the UK, except in very limited circumstances that are listed further below.

What’s Changing & Why?

As we know red diesel is just white diesel with a red dye added, this red diesel is taxed at a much lower rate than white diesel. It was originally introduced as a concession for industrial uses that were off highway applications because fuel duty was mainly intended to be tax on road vehicles.

Changes were announced by the UK Government during 2020’s Budget as part of their mission to drive down carbon emissions and to achieve a net-zero by 2050. Red diesel accounts for production of almost 14 million tonnes of carbon dioxide a year while its use in construction alone cause 7 per cent of nitrogen oxide emissions in London in 2018.

After the 1st April 2022 deadline, most users of red diesel will have to transfer to white diesel instead. Taxing most users at the full rate is intended to reflect the impact of the emissions they produce, whilst also promoting the use of cleaner alternatives.

This is of course great news for the environment but can be confusing for the industries that will now be affected.

Who Will Be Affected By The New Red Diesel Rules?

The following industries will no longer be allowed to use red diesel in their applications:

  • The Construction Industry
  • Commercial Heating
  • Plant Hire 
  • Haulage for transport refrigeration units on lorries
  • Waste Management 
  • Road Maintenance
  • Airport Operations
  • Oil and Gas Extraction
  • Manufacturing e.g ceramics, steel and timber
  • Ports
  • Logistics
  • Mining and Quarrying
  • Leisure

How Do I Ensure I’m Compliant?

The first point of call is reading up on the new guidelines for red diesel tax rebate charges that are available on the government website, found here – www.gov.uk.

Registered fuel suppliers that switch a fuel tank from red diesel to white must ensure they flush out the tank and also supply lines until no trace of marked rebated fuel remains. 

Run down your red diesel supply before the 01st April 2022. In most cases this doesn’t mean you need to get rid of every single trace of red diesel by flushing fuel tanks, however you must be able to prove that you have not purchased red diesel after the 01st April 2022 deadline or stockpiled red diesel close to this date.

Prevent Theft!

As higher volumes of white diesel arrive in depots and construction sites, we all know the challenge of fuel theft in the UK has just got a lot harder unfortunately. Smart tanks and locks will keep fuel as secure as possible, while a tank telemetry system offers a way to monitor fuel levels in real time, some can even send you an alert via your mobile or tablet in real time if stocks suddenly drop. 

Do I Still Qualify To Use Red Diesel?

The following applications qualify to continue the use of red diesel. If you are not using red diesel for the below purposes, then you will no longer be entitled to use red diesel.

  • For vehicles and machinery used in agriculture, horticulture, fish farming and forestry. This includes allowing vehicles used for agriculture to be used for cutting verges and hedges, snow clearance and gritting roads.
  • To propel passenger, freight or maintenance vehicles designed to run on rail tracks.
  • For heating and electricity generation in non-commercial premises – this includes the heating of homes and buildings such as places of worship, hospitals and town halls; off-grid power generation; and non-propulsion uses on permanently-moored houseboats.
  • For maintaining community amateur sports clubs as well as golf courses (including activities such as ground maintenance, and the heating and lighting of clubhouses, changing rooms etc).
  • As fuel for all marine craft refuelling and operating in the UK (including fishing and water freight industries), except for propelling private pleasure craft in Northern Ireland.
  • For powering the machinery (including caravans) of travelling fairs and circuses.