Why is Rebated Red Diesel Being Banned?
January 12, 2022
High Quality Home Heating Oil, Fuel Additive, Red Diesel & Coal Delivery in Drumaness, Newtownards and Killinchy
The imminent ban on the use of rebated red diesel will cause a bit of a shake up, and affect a variety of sectors. On 1st April 2022, many will lose their entitlement to red diesel and rebated biodiesel, impacting industries such as construction. Red diesel is actually, white diesel with a red dye mixed in, and is taxed at a significantly lower rate. Certain off-road industrial users have benefited from the concession, as fuel duty is aimed predominantly at road users.
This arrangement will change in the UK, as part of the ongoing efforts to achieve net-zero carbon emissions by 2050. The changes were announced by the government during the 2020 budget. Those who have been using red diesel, will soon have to use white diesel instead which is taxed at the full rate. This reflects the impact of emissions produced, and promotes the use of clean alternative fuels.
Some will still be allowed to use red diesel, but this will depend on how the equipment is used, as opposed to which equipment is used. Some in the construction and other industries have been left a little confused, and unsure if the ban applies to them. Guidelines will be published that will specify who can still use red diesel and in what way. For example machinery that is used for both agriculture and construction, will still be able to use red diesel but only for agriculture purposes.
Commercial heating and power generation will also be affected, for instance on-site mobile generators will not be allowed to run on red diesel. Industries such as agriculture, commercial fishing and rail which also rely on gas oil will be exempt from the changes. Some other industries that will no longer be able to use red diesel include:
• mining and quarrying
• airport operations
• oil and gas extraction
• waste management
• commercial heating
Remember you can get all of your superior quality home heating oil, red diesel and coal from Strangfords. Order online or call us on 028 4461 6111