Red Diesel Tax Changes in the UK
Shell TapUp, March 2022 - Starting 1 April 2022, the use of red diesel fuel (also known as off-road diesel) will be restricted throughout the UK. This means that entire industries must switch to regular white diesel (road diesel) or alternatives like gas-to-liquid (GTL) fuel or biofuels. Red diesel is untaxed, whereas white diesel and alternative road fuels are taxed. This governmental change does not mean that the duty rate for red diesel will now equal the white diesel duty rate. Instead, it is a dramatic restriction on who is allowed to use duty-free red diesel.
WHO IS IMPACTED BY RED DIESEL REFORM?
Because this change is very broad, it might be best to first understand which groups are exempt from the change:
- Agriculture, forestry, and fish farming
- Rail vehicles
- Non-commercial heating and power generation (places of worship, hospitals, townhalls, off-the-grid homes, and non-propulsion uses for houseboats)
- Boating and sailing for commercial industry or private use (except pleasure craft in Northern Ireland)
- Traveling circuses and fairs
- Amateur sports clubs and golf courses
Most industries, however, will need to change from off-road diesel to white diesel or alternative fuels, including:
- Construction and road maintenance
- Logistics and haulage
- Oil and gas extraction
- Waste management
- Commercial heating
- Airport operations
If your business is impacted, the most important things to do are:
- Abide by all government requirements as updated on the UK government website
- Research fueling alternatives
- Find alternative fueling sources
The main goal of the red diesel policy change is to encourage the use of fossil-free and eco-friendly fuels. With Shell TapUp’s mobile fuel delivery service we can bring advanced alternative fuels that produce cleaner engines and long-lasting durability to your vehicles. Read why Shell FuelSave Diesel, Shell GTL Fuel, and HVO Fuel help reduce operating costs and emissions.
- Gas-to-liquid (GTL) fuel — Made from natural gas, Shell GTL fuel produces fewer pollutants in both on-road and off-road vehicles. It is a paraffinic fuel that decreases clogging and reduces your fleet’s total emissions.
- Shell FuelSave Diesel — Shell developed this fuel to ignite faster than other diesels while removing carbon deposits from fuel injectors and preventing future build-up, which increases your fuel economy and vehicle reliability.
- Hydrotreated Vegetable Oil (HVO) — HVO fuel is a synthetic biofuel made from biomass and suitable for driving existing diesel vehicles. The fuel is fossil-free and biodegradable. With HVO you can save up to 89% CO2 in the entire chain.
Learn more about alternative fueling options, including fuel suitability and delivery for vehicles, contact Shell TapUp today.