Who can use red diesel after 2022?
The government have restricted the use of red diesel and related biofuels since April 2022 to the following:
- Agriculture, horticulture, fish farming and forestry, including machinery for cutting verges and hedges, snow clearance and gritting roads
- Domestic heating and electricity generation
- Heating and electricity generation in non-commercial premises including places of worship, hospitals, townhalls and permanently-moored houseboats
- Vehicles that run on rail tracks
- Maintaining community amateur sports clubs (ground maintenance, heating and lighting of clubhouses, changing rooms etc.)
- Golf courses (ground maintenance, heating and lighting of clubhouses, changing rooms etc.)
- Marine craft refuelling and operating in the UK (including fishing and water freight industries), except for propelling private pleasure craft in Northern Ireland
- Travelling fairs and circuses (machinery and caravans)
Why was this change brought in?
With ever-increasing air quality and emission targets, the government hope that this change will encourage users no longer entitled to red diesel to move to cleaner energy, more energy-efficient equipment and to use less fuel. This is more in line with standard diesel users who face increasing measures to reduce their emissions, through increased duty and associated financial costs.
How is red diesel different to regular white diesel?
Red diesel and white diesel are the same product, red diesel just has a dye added to enable identification.
Why are red diesel and white diesel different?
The current system of red diesel and white diesel was originally brought in as a form of road tax. The majority of vehicles on the roads are only permitted to use white diesel, which has a duty 57.95 pence per litre, as opposed to red diesel which has a duty rate of 11.14 pence per litre.
How are private pleasure crafts like canal boats affected?
Privately owned pleasure craft are no longer entitled to use red diesel for propulsion from April 2022. But they can still use red diesel for heating and electricity generation. There are proposals for vessels with only one tank that fuels both heating and propulsion. This is to deduct some duty at the point of sale based on estimated use for propulsion vs non propulsion. From our understanding the ratio is still being under review, potentially a 60/40 split for propulsion vs non propulsion, so you would pay 60% at the white diesel rate and 40% at the red diesel rate.
How does this affect how I buy my fuel?
We already have a system in place to regulate the use of red diesel. You will be asked to complete a form in order to receive a red diesel supply from us.