DRIVERS face major fuel changes in just weeks with the end of “red diesel”.
The use of rebated gas oil, widely used to operate registered off-road vehicles and machinery, will be illegal from April 1 – unless under very specific circumstances.
The ban will mean a hefty tax hike for thousands of motorists across the UK, leading some to accuse the government of “punishing” certain sectors.
Red diesel, as the name suggests, contains a red dye.
While it is no different to regular white diesel, the colour helps HMRC and police to identify illegal usage.
Under current law, it is permitted for use across most sectors.
When used in road vehicles it is subject to a duty of almost 58p per litre, but this drops to just 11p when used for other means.
Using it in road vehicles on public roads is considered tax evasion and drivers face hefty fines – except farmers travelling very short distances.
But from next month, red diesel will no longer be allowed for most users, including those operating bulldozers, cranes and mobile generators on construction sites.
Instead, they must opt for diesel or biofuel for which the full rate of fuel duty has been paid, nearly 58p per litre.
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The only exceptions are for machines, vessels and appliances in certain industries.
This includes agriculture, forestry and horticulture, as well as some non-commercial heat and power generation, travelling fairs, amateur sports clubs and vehicles used for clearing snow and gritting roads.
Also scrapped under the new rules are rebated Hydrotreated Vegetable Oil (HVO), rebated biodiesel and bioblend, kerosene taxed at the rebated diesel rate and fuel substitutes.
However, fully rebated kerosene is unaffected by the changes and can be used for all heating purposes.
The changes form part of the Finance Bill 2021 to help meet climate change and air quality policy objectives.
Red diesel accounts for the production of almost 14million tonnes of carbon dioxide a year, with the government estimating it accounts for around 15 per cent of the total diesel usage in the UK.
This has led some industry experts to call on ministers to delay the upcoming changes by at least 12 months after a difficult period during the pandemic.
CALLS TO RECONSIDER
Rod McKenzie, director of policy and public affairs at the Road Haulage Association, said: “UK hauliers have done a heroic job in keeping the economy running during the Covid crisis.
“Punishing them with a red diesel hike tax is damaging to their business and we urgently call on the government to reconsider this move.”
The RHA added in a separate statement: “We are making the move due to the crippling cost pressures that hauliers are experiencing as we emerge from the pandemic and one year on from the UK’s departure from the EU.
“With shortages of drivers, vehicles and parts combined with increasing wage, fuel, and energy costs, now is not the time to pile on extra costs on small businesses and put our economic recovery at risk.”