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Direct Delivery

Gas Oil Duty Change

Gas Oil Duty Change


At budget in March 2020, the UK government announced that changes will be made to the way that red diesel is taxed. The legislative changes on the use of red diesel will take affect from 1st April 2022 which will impact how red diesel can be used for a variety of sectors and applications. Through limiting the use of red diesel across the majority of commercial sectors the government are encouraging whole industries to switch to cleaner alternative fuels, in a bid to help achieve the UK’s climate change and air quality targets.

As the gas oil duty date grows closer and as communications surrounding the change increase, we understand that some uncertainty may still exist around the duty change. Therefore we have put together the below guide to help you to understand the implications that the duty change may have on you and your business.

Click here to visit the government website for more information on whether or not you can continue to use red diesel.

What is red diesel?

Red diesel, also commonly known as gas oil, is diesel used mainly for off-road purposes, such as to power bulldozers and cranes used in the construction, or to power drills for oil extraction. Red diesel accounts for around 15% of all the diesel used in the UK and is responsible for the production of nearly 14 million tonnes of carbon dioxide a year. Currently red diesel is taxed at a lower rate that ‘on road diesel’ and has strict usage regulations as a result.

Who can continue using Red Diesel?

From 1st April 2022 onwards, all liquid fuel distributors such as Your NRG will only be able to supply red diesel (Gas Oil) to customers in the following sectors:

  • Commercial Boat Industry
  • Traveling Fairground & Circus Industries
  • Non Commercial Power Generation (Hospitals & Schools
  • Community amateur sports clubs (CASCs) and golf courses
  • Forestry, Horticulture & Fish Farming
  • Passenger, Freight or Maintenance Vehicles on Rail Tracks
  • Non Commercial Heating (Places of Worship & Town Halls)

Who will be affected?

As of 1st April 2022, customers in the following sectors WILL NOT be able to use red diesel (Gas Oil) and will be required to switch to white diesel (DERV) or other alternatives:

  • Construction
  • Mining & Quarrying
  • Ports
  • Manufacturing
  • Haulage
  • Road Maintenance
  • Airport Operations
  • Oil & Gas Extraction
  • Plant Hire
  • Logistics & Waste Management

What does this change mean for our customers?

The exact implications for your business will depend on your industry and which application you’re using red diesel for.

If your application is INCLUDED in the list of qualifying uses for red diesel, you will not be affected by the gas oil duty change. You can continue to order, receive and use red diesel after the changes are implemented on April 1st 2022.

If your sector is NOT INCLUDED in the list of qualifying uses – including our construction and manufacturing customers, as well as a number of transport and logistics uses – you will NOT be able purchase or use red diesel from 1st April 2022 and you must switch to an alternative fuel.

If your business is now not included in the list of qualifying uses for red diesel, you now may be wondering how you can prepare for the legislative changes that will shortly take effect in the UK.

How can you prepare for the change?

Our advice is to use the time running up to the change wisely to ensure that your business continues to run effectively on white diesel or an alternative fuel mix, and to guarantee full compliance with the law come 1st April 2022.

You can do this by ensuring that you familiarise yourself with the government guidelines and begin to plan how you will address the change. The government suggest that you should think about depleting or removing your red diesel supplies by the deadline to prevent hefty fines. Despite the projected financial implications of the change not yet being fully explored, we suggest that weighing up your options in advance will likely to lessen the impact of the change on your business.

Alternative Fuels

Even though the legislative change brings challenges for businesses who will not be able to use red diesel from April 1st 2022. We must see this as an opportunity to consider the use of future fuels as a way of creating a pathway to a better environment for all communities. Our future fuels will be cleaner and greener and made from fossil free, certified sustainable waste materials, reducing your carbon emissions, in some cases by almost 90% compared to existing fuels. Subject to the completion of successful trials and obtaining government approval, we hope to be able to begin introducing ‘next generation fuels’ through 2022 and beyond.

If you are affected, what are your options?

Aside from standard white diesel/DERV we now supply a range of future fuels that are now available from a number of our depots. Now is the perfect time to review your fuel mix...


As a renewable drop in alternative, HVO (Hydrotreated Vegetable Oil) offers up to 90% reduction in greenhouse gas emissions helping you reduce both your localised emissions and your overall carbon footprint.

HVO is now available from our northern depots (Hartlepool, Birtley, York and Lincoln).


GTL, otherwise known as gas-to-liquid, is an alternative fuel that provides a cleaner burn compared to standard diesel and helps reduce emissions of air pollutants in comparison to conventional crude oil refining.

GTL is now available from our Thetford, East Anglia depot.

Fuel Cards

With the recent increase of DERV/white diesel prices it has become more of a challenge to hold and store fuel on sites due to the increased risk of theft.

Simply and safely manage your business fuel requirements through our extensive range of Fuel Cards.

Click here to visit the government website for more information on whether or not you can continue to use red diesel.

To make an enquiry about Your NRG’s future fuels offering simply submit your contact details to our enquiry form above.

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