What’s changing?

From 1st April 2022, most businesses that currently use rebated (red) diesel will no longer be allowed to do so. By that date, these businesses will need to switch to white diesel or a biofuel alternative, which carry the full rate of duty.

Why are the rules changing?

These duty changes are part of the government’s aim to bring the UK’s greenhouse gas emissions to net zero by 2050 – a target that is set in law.

Red diesel makes up around 15% of all diesel use in the UK and is responsible for producing 14 million tonnes of CO2 a year. Reducing the entitlement to red diesel is a way to incentivise businesses to scale down their diesel usage altogether.

Who CAN use Red Diesel as of April 2022

Who CAN'T use Red Diesel as of April 2022

How will the red diesel changes affect businesses?

If your business can no longer use red diesel, you will unfortunately face significant cost increases. White diesel currently attracts a fuel duty rate of 57.95 pence per litre – 46.81 pence per litre higher than the duty rate of red diesel.

What do businesses need to do?

From 1 April 2022 it will be illegal to put rebated fuel into the tank of a vehicle, vessel, machine or appliance that is not able to use it.

If you are no longer allowed to use rebated fuel:

• Talk to your AID Fuel Oils about your plans.

• Plan to run down the fuel in your vehicles or machine before 1 April 2022.

• If you sell or dispose of your rebated fuel keep a record of how and when the fuel was disposed of, or who it was sold to and when.

• Keep a record of your purchases of red diesel in the months ahead of the April 2022 deadline.

• Do not stockpile or increase your orders ahead of the deadline. Under RDCO rules, distributors are not allowed to supply more rebated fuel than a customer no longer able to use it may realistically use before the rules change.

You will not be expected to flush out all traces of rebated diesel from the fuel tank of a vehicle or machine.