The Red Diesel Ban Explained

In the fuel industry in the UK, the banning and the fuel duty rate of red diesel by the government has become one of the most talked about topics. This has created discussions and concerns within the fuel industry and businesses gaining access to red diesel. What does the ban entail, and why has a fuel duty status been implemented on red diesel?

In this blog, we will look into the details of the banning of red diesel, its implications, and the reasons behind it.

Understanding Red Diesel

Before looking into the banning of red diesel, it’s important to have a good understanding of what red diesel is and its importance. Red diesel, also known as gas oil, is a type of rebated fuel, dyed red to indicate its tax-exempt and fuel duty status. It is typically used in off-road vehicles, machinery, and equipment across agriculture, construction, and transportation industries.

The lower tax rate on rebated fuel compared to regular white diesel has provided cost-saving benefits for businesses and organisations relying on these vehicles and machinery.

What Does the Ban Involve?

The UK government announced plans to ban the use of red diesel as part of its efforts to reduce carbon emissions and tackling climate change. Effective from April 2022, the ban prohibits the use of red diesel in most sectors except for certain industries and applications. These exemptions primarily include sectors where there are no available alternatives to red diesel, such as:

• Agriculture
• Horticulture
• Forestry

Reasons for the Banning of Red Diesel

The UK government’s commitment to reducing carbon emissions across the country and tackling climate change is one of the main reasons for placing a ban on red diesel. Red diesel, despite its widespread use and economic benefits, has been identified as a contributor to air pollution and carbon dioxide emissions.

The government aims to transition to cleaner and more sustainable fuel alternatives by reducing the usage of red diesel across the UK.

This includes promoting cleaner fuels such as HVO fuel and promoting the usage of electric vehicles, hydrogen-powered machinery, and low-carbon technologies.

The banning of red diesel promotes a much greener and more environmentally friendly future for the UK and allows businesses to have a much more positive impact on the environment and provide a cleaner working environment for their employees.

The Impact on Industries

The banning of rebated red diesel has a significant impact on industries who are rely on fuel on a regular basis. However, the banning doesn’t impact industries such as agriculture as red diesel is still permitted for off-road vehicles such as tractors and other farming machinery.

The construction industry is an industry that heavily relies on red diesel, using the fuel to power machinery and generators on construction sites. The banning has posed many challenges for construction companies as they have faced increased operating costs across the UK when making the transition to fuel alternatives such as white diesel to comply with the new regulations.

Transportation is another industry is another industry that has been affected by the banning of red diesel. While red diesel is not commonly used in road vehicles, the fuel is no longer permitted for on-road usage.

The government has introduced new regulations meaning that the rebated fuel can only be used for off-road usage. Transportation companies using on-road vehicles have been forced to find alternative fuels meaning that costs have increased due to a high fuel supply demand for cleaner fuels.

Transition Challenges

One of the main challenges posed by the rebated fuel is the transition to more sustainable fuels and technologies. For many industries, finding suitable alternatives to red diesel is not a straightforward process. One sustainable alternative that has gained a lot of credibility in the fuel industry for its on-road usage benefits is hydrotreated vegetable oil.

Electric vehicles offer a promising solution for reducing emissions in the transportation industry. However, the development of electric vehicles is ongoing meaning that they are not accessible to all transportation companies across the UK.

In agriculture, biofuels and renewable energy sources such as solar and wind power are being explored as power generation alternatives to red diesel. However, the adoption of these technologies requires significant investment and may not be feasible for all farmers, particularly those operating on a smaller scale.

The construction industry also faces similar challenges in finding alternative fuels for heavy machinery and generators. While some companies may go for cleaner-burning fuels such as biodiesel or compressed natural gas, other companies may need to invest in newer efficient equipment to meet emissions standards.

Government Support

Recognising the challenges that industries and companies have faced when transitioning away from rebated fuel, the government aims to provide various support measures to help with the transition to cleaner fuels. This includes financial incentives, grants, and subsidies to help businesses invest in cleaner technologies and upgrade their equipment.

There are also initiatives aimed at improving access to fuel alternatives and infrastructure, such as electric vehicle charging points and hydrogen refuelling stations.

The government has been working closely with industry stakeholders to address concerns and ensure a smooth transition process to cleaner and more sustainable fuels. This includes consulting with representatives from affected industries to understand their needs and tailor solutions for their company.

Red Diesel at Pleavin Petroleum

While the UK government has placed a fuel duty status on red diesel which has had major impacts on many industries, the fuel is still permitted for off-road usage and can still be purchased. Industries such as agriculture operate off-road meaning that their agricultural vehicles and machinery are suitable for the usage of red diesel fuel.

If you are looking to purchase red diesel for your business, look no further than Pleavin Petroleum. We provide efficient 24/7 nationwide fuel delivery services meaning that your order will be with you within 24 hours.

This will ensure that your fuel tanks never become low on fuel allowing your business to continue to run smoothly. Place an order with us today and receive high-quality red diesel fuel for your business within no time.