Changes to Red Diesel Legislation from April 2022
From April 2022, there will be new restrictions on who can use red diesel and rebated biofuels. As a result, those previous entitled to rebated fuels who are not eligible under the new scheme must prepare to transition to white diesel before 1st April.
Who is eligible to use red diesel / rebated fuels?
From 1st April 2022, the use of red diesel and rebated biofuels will be restricted to the following purposes:
- For vehicles and machinery used in agriculture, horticulture, fish farming and forestry. This includes allowing vehicles used for agriculture to be used for cutting verges and hedges, snow clearance and gritting roads
- To propel passenger, freight or maintenance vehicles designed to run on rail tracks
- For heating and electricity generation in non-commercial premises - this includes the heating of homes and buildings such as places of worship, hospitals and townhalls; off-grid power generation; and non-propulsion uses on permanently-moored houseboats
- For maintaining community amateur sports clubs as well as golf courses (including activities such as ground maintenance, and the heating and lighting of clubhouses, changing rooms etc.)
- As fuel for all marine craft refuelling and operating in the UK (including fishing and water freight industries), except for propelling private pleasure craft in Northern Ireland
- For powering the machinery (including caravans) of travelling fairs and circuses
Farmers have also been reminded that the use of red diesel on public highways is restricted, and white diesel should be used unless travelling between fields or carrying out agricultural-based work such as hedge cutting or salt gritting mentioned above.
However, those in industries such as construction, landscaping and maintenance where red diesel was previously permitted are advised to check in which scenarios they are allowed to use rebated fuels, and are reminded that red diesel cannot be used to travel on public highways.
Seek guidance from HMRC if you are unsure on if you qualify.
Can I keep my current supply?
The government guidance is that businesses must not stockpile red diesel before the changeover date. Any pre-existing fuel in a machinery tank can be used so long as it was legally put into the vehicle before the changeover date. Any fuel contained in storage tanks after this time must be disposed of or transferred to someone who is still able to use it.
Will I need to flush out my tank?
Those previously eligible to use red diesel are not required to flush out their tanks. As traces may still be present in machinery, businesses are advised to keep records of any red diesel put in before the rule changes, along with evidence of the transition to white diesel to show compliance with the change in legislation.
How can I store my fuel safely?
Any diesel or fuels stored on a business premise must be kept secure to prevent risks of pollution and theft. At Spaldings, we have a range of products to help you keep your fuel and equipment safe and secure.
For more information, visit: https://www.gov.uk/government/publications/reform-of-red-diesel-entitlements/reform-of-red-diesel-and-other-rebated-fuels-entitlement