Changes to Red Diesel Use
As you may know from some of our previous posts. The UK government announced changes to the rules on rebated diesel usage. This has been a source of confusion and concern across UK businesses. Don’t worry though, Oilfast have decided to answer some of the more frequently asked questions. This will help businesses and customers get ready for the upcoming changes in April.
What is happening to Red Diesel?
The Government has removed the duty rebate from the 1st of April 2022. This is in order to help the UK achieve its target of net-zero carbon target.
Who will be affected?
The new legislation will affect all off-road plants and machinery currently using Red Diesel as fuel unless identified in the exemption list (see below)
When will duty-free be removed?
Duty-free will be removed from the 1st of April 2022 for all industries, not on the exemption list.
Which industries can still use Red Diesel?
There are still many industries that can still use red diesel:
- Agriculture
- Forestry
- Horticulture
- Fish Farming
- Home Heating
- Rail-mounted vehicles
- Marine craft
- Travelling fairs & circuses
- Amateur sports
- Non-commercial power generation
What is non-commercial power generation?
Organisations that are non-commercially focused. For example, public bodies, non-profit organisations, town halls, places of worship, council buildings that use Red Diesel for electrical generation or heating.
Can I stockpile before the 1st of April 2022 and then stop before I run out?
No, the Government expects all Red Diesel users to run down their stocks prior to the 1st of April.
What will HMRC do if I continue to use Red Diesel?
HMRC Compliance Officers have the power to seize vehicles and machinery. This could be for as long as it takes to bring the user to court for fuel misuse.
Is your business one of the below?
Industries that are NOT affected by the removal of the tax exemption:
- Forestry
- Fish Farming
- Horticulture (fruit & vegetables)
- Agriculture (Plants & Livestock)
- Trains & Rail vehicles that run on rail tracks
- Home Heating Oil (Gas Oil)
- Non-Commercial Electricity Generation & Heating Systems, include places of worship, Town halls, Hospitals, The Public Sector & Schools.
- Sports Clubs & Venues
- Marine Craft Refuelling
- Travelling Fairs & Circuses.
I have been using red diesel and am not on the exemption list. What do I do after April?
After the 1st of April, anyone who is not on the exemption list and currently uses Red Diesel (Gas Oil) will need to switch to White Diesel (Derv). Oilfast uses our expertise and buying power in the fuel industry to buy the stock at the best price and pass this on to our customers.
Oilfast is proud to offer a more environmentally friendly, diesel replacement called HVO. You can use GreenD + in any diesel engine without requiring any changes to the engine. Manufacturers have approved GD+ and identified there is no degradation in performance.
We have produced a handy A5 poster/guide that can be downloaded here.
Looking to order Red Diesel? Call your local depot today and our friendly sales team will answer any of your queries and find the best suitable delivery time for you.
If you have any uncertainties or questions about this change, please contact the Red Diesel Entitlement Policy Team by email: reddieselentitlement@hmrc.gov.uk
