The Demise of Red Diesel
From April 1st 2022 many sectors will lose their entitlement to use red (rebated) diesel in vehicles, plant, generators and boilers. The exceptions are:
- Agriculture
- Commercial fishing fleets
- Non-commercial heating or power generation
Ordinary white (road) diesel is taxed at the full rate of 57.95 pence per litre (ppl). By contrast red diesel is entitled to a rebate of 46.81 ppl. this means it is effectively taxed at only 11.14 ppl.
In order to stay compliant with the law it is essential to run down your stock of red diesel before the 1st April 2022 deadline.
Any red diesel put into a tank after 10th June 2021 (when the Finance Act 2021 received Royal Assent) cannot be used unless a specific licence is granted by HMRC.
We can organise the uplift of unused red diesel, disposal of it and the cleaning and relabelling of your fuel tanks. We may be able to get a rebate for the fuel in some cases.
You might consider reusing your fuel tanks for HVO or white diesel.