Adjusting to the Red Diesel Tax Changes

Is your business compliant after the gas oil rebate changes?

The government has changed the entitlement on red diesel tax from 1st April 2022 to help the UK achieve net zero carbon emissions by 2050. This means that red diesel is no longer subsidised for all uses, and some businesses will need to find alternative fuels. Crown Oil Environmental provides full support in your transition to an alternative fuel and can offer excellent rebates for gas oil.

Call 0330 123 3399 to speak to a fuel specialist

Why has red diesel been scrapped for some sectors?

For important information about the red diesel changes, including the sectors and applications no longer eligible for rebated fuel use, watch our video.

Not got time to watch our video?

red diesel tax changes

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The fuels affected:

  • Rebated red diesel
  • Rebated HVO
  • Rebated biodiesel/bio-blend
  • Fuel substitutes

The sectors affected are:

  • Construction and road maintenance
  • Logistics and haulage (including refrigeration units)
  • Mining and quarrying
  • Oil and gas extraction
  • Waste management
  • Commercial heating
  • Leisure
  • Airport operations
  • Manufacturing (such as ceramics, timber and steel)

Get prepared for the change in legislation and call our fuel experts on 0330 123 3399

How can Crown Oil Environmental help?

We can handle every element of your fuel changeover, providing end to end consultancy and guidance while ensuring your tank is compliant with all relevant standards. This includes:

  • Uplift and buyback your rebated fuel (minimum quantity 5,000 litres)
  • Full tank clean if required
  • NDT inspection – vital if your tank is over 10 years old
  • HVO supplied at competitive rates with excellent credit terms available

Common questions surrounding the red diesel duty changes

If I’m not one of the eligible sectors, can I purchase red diesel after 1 April 2022?

No, if your sector is no longer permitted to use red diesel after this date, you will need to purchase white diesel or a cleaner alternative such as white HVO.

Can I stockpile red diesel?

No this is not permitted. HMRC are advising any non-exempt customers to plan their red diesel purchase/usage up to the 1st April 2022 and ensure you only buy what you will use by this date.

What if I have rebated diesel fuel leftover in my fuel tank?

If you have any rebated fuel left in your tanks after 31st March, you will need to either:

  • Sell or give to someone who is allowed to use it
  • Sell or give to any Registered Dealer in Controlled Oil (RDCO)
  • Dispose of it via an approved waste oil or recycling company

*Please ensure you keep records of any sale or disposal

Should I keep any records of sale?

We recommend keeping accurate records of all fuels you purchase to show that you haven’t been stockpiling and that you have started the transition to a non-rebated fuel.

What if I am found to have traces of rebated diesel in my tank after 1 April 2022?

The HMRC will take a pragmatic approach to all cases. As long as you have invoices/receipts to prove you have moved over to full duty fuel they will be more mindful of companies and individuals continuing to use red diesel illegally.

Do the new rules affect Hydrotreated Vegetable Oil?

Yes the rules affect HVO in the same way as rebated fuels. If you’re still eligible to use red HVO, the duty remains at 11.14 and white HVO 57.95. If you’re no longer eligible to use red HVO, then you will need to switch to white HVO.

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