What Are the Rules on Uses of Red Diesel?

Red diesel fuel has a lot of benefits over competing fuel options. It can be used as a fuel for home or business heating, as well as for use in diesel-powered equipment. However, there is a reason that this fuel is less expensive than normal diesel fuel, despite their chemical similarities. Diesel fuel is taxed heavily, while red diesel fuel is not. This is why a red dye has been added to the fuel. Accordingly, there's a few simple rules and regulations concerning this fuel that the informed consumer ought to know about.

The Rules of Red Diesel Fuel

Since red diesel is chemically similar to diesel, it can power diesel engine vehicles and equipment. However, the law expects that any fuel used to operate vehicles on public roads has had its proper tax paid. This sort of diesel can be used in a variety of different ways in a variety of different sectors. In agriculture, farming equipment such as tractors and harvesters can use this fuel at a much lower cost than diesel fuel. For construction firms, the fuel can be used to power construction equipment at a reduced cost. However, red diesel is not allowed to be used in any vehicle on the public roads.

The Rules about Diesel Fuel

Clarifications about Enforcement

Recently, the HMRC has released statements regarding the use of this fuel for agricultural purposes. As long as the owner's purpose is related to an agricultural activity, then the vehicle is allowed to travel on the public roads while utilising the cheaper fuel. This enables farmers to make use of their vehicles in participation at agricultural events, to educate and create skills within their industry, and to promote their industry to the general public.

Nick Sykes (Director) - Red diesel supplier and heating oil supplier. Birmingham Fuel Oils are a National and Local UK supplier of fuel oils and lubricants. They provide fuel and oil related products to business and domestic customers across several markets and industries

Regarding unauthorised use, however, the law is not so flexible. Recently, new regulations came in to force which penalise those who use fuel for which the proper tax has not been paid. It is clear that using fuel for which the proper tax has not been paid in cars on the road will be viewed as a circumvention of tax laws. On July 16th 2010, unrelated cars were stopped and were found to be using red diesel in Wiltshire. All of the owners faced 500 fines. While the law may appear simple, using a trusted, experienced, and knowledgeable fuel supplier can help consumers be sure that they are compliant with the HMRC.