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Red Diesel & the Gas Oil Duty Change

 Red Diesel & the Gas Oil Duty Change

Red Diesel & the Gas Oil Duty Change

During the March 2020 Budget, the government outlined plans to change the way red diesel can be used and taxed from April 2022. These changes were introduced as part of the government’s plans to create a cleaner and greener country, achieve air quality targets and ultimately, to encourage commercial businesses to switch to alternative fuels. You can find out more about making your business more sustainable for the future with our future fuels supply. 

These new red diesel regulations have impacted sectors and companies throughout the UK, with many business owners still unsure how the updated legislation applies to their day-to-day operations. That’s why we’ve put together this guide, to help you ensure that your business is complying with the gas oil duty change. 

Red diesel changes, rules and legislation from April 2022

If you’ve been Googling ‘when is red diesel being phased out and stopped?’ and ‘is red diesel being banned?’ then you’re not alone. To answer your questions, new red diesel regulations were introduced on 1 April 2022 which stated that red diesel can no longer be used for a variety of commercial applications and sectors.

The industries that will no longer be able to use red diesel or gas oil are: Road maintenance and construction Manufacturing Haulage and logistics Mining and quarrying Oil and gas extraction Ports and airport operations Plant hire Waste management Commercial heating As of 1 April 2022, these sectors must now switch to an alternative fuel source, such as white diesel (DERV) or alternative, fossil-free fuels.

Here at Your NRG, we care about creating a greener future and as such, we have a special interest in future fuels. This includes supplying HVO, a renewable fuel that acts as direct drop-in alternative to traditional diesel.

Red diesel changes and construction from April 2022

The red diesel regulation changes introduced in April 2022 have impacted many sectors, including construction. This industry has been hit hard by the new rules, as red diesel is commonly used on construction and building sites to power generators and machinery.

However, these changes mean it’s now illegal to use red diesel in any construction vehicle or piece of equipment. As part of this legislation, the government has announced that it will increase the number of checks and significant fines will be imposed for those companies and individuals who do not comply. That’s where we can assist. From HVO to GTL, we supply a range of cleaner future fuels to a wide range of sectors and industries, including construction.

Is red diesel illegal or legal?

Government legislation came into effect in April 2022 which outlined those sectors that can no longer use red diesel and instead, must switch to fuel that’s taxed at the normal rate. This includes construction, manufacturing and haulage. If you’re unsure whether using red diesel is illegal or legal, our friendly experts at Your NRG are here to help, so please contact us today to get advice from a member of our team. Alternatively, you can visit the gov.uk website for more information.

Who and what vehicles can use red diesel after April 2022?

Although the new red diesel regulations impact a wide range of sectors, some industries still benefit from red diesel exemptions and can continue to use this fuel. The sectors that are still permitted to use red diesel are: rail, commercial boating, non-commercial heating, farming and agriculture, horticulture and forestry, travelling circuses and fairs, community sports.

The list of exempted vehicles includes: tractors, diggers, light agricultural vehicles, agricultural engines, gritters and snow clearing vehicles, materials handlers and mobile cranes. However, in order to qualify for exemption, there are rules about how these vehicles can be used. For example, tractors must be used for agricultural, forestry or horticultural purposes, gritting or for trimming hedges and trees that border public roads.

Red diesel alternatives at Your NRG

From compliance to creating a greener future, our knowledgeable team is on-hand to assist. We believe that greener fuels will be key in achieving net zero targets and we’re proud to help our customers lower their environmental impact. Are you a business owner ready to transition to GTL? Or do you want to switch your home heating to HVO? Contact us or get an online quote to transfer to an alternative fuel today.