Dealing with the Red Diesel Price Rise
April 3, 2022
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A Kent fisherman recently saw his rebated ‘red’ diesel fuel bill more than double from £80 a day to £170, prompting him to use his initiative. He found it cheaper to haul his boat out of the water, transport it to a petrol station and fill up the tank with ordinary diesel. Using white diesel is saving the fisherman 70p per litre, especially once he reclaims road duty and VAT. The worrying changes regarding red diesel, will mean that fishermen will have to catch more fish for a smaller cut. This will inevitably result in an unwelcome rise in the price of fish, already an expensive product.
It would not be practical for boat owners to regularly use this novel method of fuelling their boats, as the tall masts on boats have to be cut off. This is to enable boats to negotiate bridges and other barriers en route and at petrol stations. There are complaints that the French government have stepped in with subsidies to keep their fleets sustainable, while the UK government have done nothing.
Red diesel is used for off-road vehicles and machinery including boats for fishing, and was originally intended to be a low cost form of fuel. This diesel has an added red dye and chemical markers to differentiate it from white diesel. Red diesel was banned for most users from 1st April 2022.
Fuel prices have hit an all time high at UK forecourts, as petrol rises to 167p a litre while diesel reaches 179p a litre. In just one month, petrol has increased by 18p and diesel by 26p, although there is speculation that Chancellor Rishi Sunak is preparing to slash the cost of fuel duty. The cost of wholesale fuel and oil is actually falling, causing some to question rising costs at the pumps. Red diesel users are not happy that the price of this product is rising faster than white diesel. Some are calling for a government investigation into this base rate disparity.
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