The End of Red Diesel Fuel Duty is Near, Are You Prepared?

Change your fuel stocks now to get the maximum rebate for your assets

Red diesel fuel duty is changing. If you’re set to lose your red diesel entitlement, now is the best time to replace existing fuel stocks while the red diesel market is still strong. We can clean your tank and remove any remaining rebated fuel to ensure it’s compliant before 1st April 2022.

Current Government guidance suggests that as of March 2022, fuel suppliers will not be able to supply red diesel to customers whom it suspects will not burn the fuel before April 2022. Therefore businesses will see an increase of 45.81ppl in their fuel costs as they will be forced to switch from red diesel to DERV and pay the additional duty.

As the deadline approaches, we are seeing red diesel values fall by as much as 10% every month. Change your fuel stocks now to get the maximum return for your unusable assets.

We can buy back your fuel

We can collect and buy back your red diesel, giving you the opportunity to sell at the best possible price before rates plummet further.

We can handle all elements of tank safety to ensure your tank is compliant with all relevant standards, including:

Why is red diesel duty being scrapped for a handful of sectors?

The UK government announced at Budget 2020 that it plans to remove the entitlement to use red diesel for many sectors from 1 April 2022. However, following the Coronavirus, the government took a slight U-turn at Budget 2021, and added several industries to the list that will continue to be permitted to use the rebated fuel.

Therefore, from April 2022, the entitlement to use red diesel and rebated fuels will be restricted to the following purposes:

  • Commercial boating industry, including fishing and inland water freight industries and passenger ferries
  • Non-commercial power generation, such as hospitals and off-the-grid households
  • Agriculture, forestry, horticulture and fish farming
  • Passenger, freight and maintenance vehicles that run on rail tracks
  • Non-commercial heating, such as off-the-grid homes, places of worships and townhalls
  • Travelling funfairs and circuses
  • Amateur sports clubs, including golf courses

The change in fuel duty will also apply to biodiesel, biofuels and fuel substitutes used in heating, with the rebated duty rate applied to non-commercial heating.

If you break the restrictions on the use of rebated fuels, HMRC has the power to seize vehicles and other machinery.

By working with Crown Oil Environmental, we can help you tackle the immediate task of red diesel replacement and navigate the most productive and cost-effective route to lasting compliance.

We can bridge that gap during your energy transition and handle every element of tank safety to ensure it’s compliant, including removing and buying back your rebated fuel. We can clean your tank and carry out non-destructive (NDT) testing if required, as well as supplying HVO fuel at competitive rates with excellent credit terms available.

Crown Oil Environmental can offer the full solution for the changeover, offering full consultancy and guidance to assist with all your needs.

Get ahead of the change in legislation and get the most out of your fuel. Call 0330 123 3399 to find out more.

Enquire about a service