Red Diesel: FAQs about Law, Tax, Usage & More

Red diesel, also known as gas oil, is a type of fuel used in off-road vehicles and machinery. Red diesel is functionally the same as white diesel, however, it has a red marker (dye) added to differentiate it from standard diesel and help prevent illegal use in road-going vehicles.

Red diesel is subject to a lower level of excise duty than white diesel, which is why it’s often called rebated fuel or rebated diesel. 

Yes, red diesel is commonly known by several other names, including:

All of these refer to the same fuel and have the same laws regarding their usage.

Yes – it’s not got its name for no reason! The red dye is added to enable authorities to identify any illegal misuse which they often do so in random checks via dip testing. The dye doesn’t change the fuel’s properties in any other way.

Technically, yes – but doing so is illegal. The intricacy of this process varies and using any method to remove the red dye is known as fuel laundering and can land you with a prison sentence.

Red diesel can dye or stain the interior of your fuel tank. While harmless, this makes it easy for police officers and HMRC to detect and prosecute fuel fraud. Even if you only use red diesel once, you could be prosecuted years later due to the colour of the tank.

British Standard BS 2869 is the fuel specification that governs gas oil. There are two grades of red diesel within BS 2869 Class D and EN 590:2013.

The fuel properties are automatically adjusted ahead of the winter and summer to maintain good low-temperature operability.

Like most fuels, red diesel is obtained from crude oil that has been extracted from the ground. The crude oil is heated and distilled to produce gas oil; the red dye is then added to the final product to give it its distinct colour.

Depending on the desired use or benefit, there are several alternatives to gas oil including:

• Industrial heating alternative: Red diesel is no longer permitted as a commercial heating fuel, meaning users must now use white diesel. Industrial Heating Oil (IHO) is a direct, drop-in alternative to diesel that has been specifically made for use in commercial boilers, dryers and heaters and is prohibited for use in engines.
• Cleaner burning alternative: Hydrotreated Vegetable Oil (HVO) is a direct, drop-in alternative to red diesel that can reduce up to 90% of net CO₂ emissions right away and be stored for up to 10 years compared to just 1 for fossil diesel.

The price of red diesel changes every day due to a number of factors, including global supply, demand, world events and politics. This means we are unable to provide live red diesel prices online. Your delivery location and required quantity also affects the cost of red diesel. The more fuel you order, the lower the price per litre.

For a competitive red diesel price, call 0330 123 1444 today.

Chemically, red and white diesel are exactly the same fuel – red diesel is simply white diesel that has been dyed. However, they are used and taxed in different ways: red diesel has a lower fuel tax duty than white diesel as it’s heavily rebated and must only be used in off-road vehicles and machinery.

No, you must not mix the two fuels. For anyone who uses both fuels (such as farmers), supplies must be kept separate, and machinery, tanks and supply lines must be flushed in between permitted and non-permitted use to remain complaint.

Yes, red diesel is chemically identical to standard diesel, the only differences are the red dye, the intended use and the applied rebate.

Rebated fuel (red diesel) is cheaper than white diesel (DERV) because of a lower fuel tax duty applied to it.

The permitted uses for red diesel are restricted to certain industries. To enable them to make a profit, it’s essential that certain duties can be reclaimed, and this includes red diesel fuel.

Since April 2022, red diesel use is restricted to the following industries:

• Travelling fairs and circuses
• Fuel used for non-commercial purposes – electricity generation and heating
• Agriculture, horticulture, fish farming and forestry
• Rail transport
• Community amateur sport clubs and golf courses
• Sailing, boating and marine transport (excluding private pleasure craft in Northern Ireland)

Removing the red diesel entitlement for most sectors was intended to incentivise users to move to cleaner alternative sources as part of its net zero drive.

For more details, visit HMRC’s website.

Red diesel isn’t illegal if used in off-road machinery and vehicles. There are a few exceptions to this i.e. tractors can use red diesel for gritting public roads and when crossing a public road from one field to another.

Any use of red diesel in a road vehicle on a public highway is illegal, as it’s considered tax evasion. You can find more details on the gov.uk website.

Technically, all diesel-powered vehicles can run on red diesel. However, should you use red diesel in a road vehicle, it is considered tax evasion and therefore breaking the law.

Red diesel is no different to regular white diesel; it has the same properties so it can power all diesel-powered engines. However, if you use red diesel in a road vehicle on public roads, it’s considered tax evasion, and you will be breaking the law.

An exception to this is for farmers. They can travel up to 1.5km using red diesel in a car or other roadgoing vehicle to access land on the public highway.

No, red diesel is exactly the same fuel as road diesel, but the red dye will stain your tank, making it extremely difficult to remove all traces.

Penalties for misusing red diesel can include:

• Potential criminal charges in severe cases
• Fines for the restoration of your vehicle’s system and the cleaning of your tank and filters to remove the marker dye
• Seizure of vehicles
• Requirement to pay back the tax difference

Tractors can use red diesel on public roads for agricultural purposes only, such as travelling from land parcels owned by the same farm. They must not use red diesel for any non-agricultural road transport activities and there is a limit on the distance that can be travelled (1.5km). Another exemption is when gritting public roads.

As long as the vehicle is only used for off-road, farm-related activity, then you will be permitted to use red diesel.

We would recommend, if possible, draining your car’s engine as soon as possible. The issue is that the red marker will remain in your tank once the red diesel is removed – therefore we would always recommend speaking to HMRC or a fuel company.

No as it’s illegal to have two different tanks which can connect to your engine and carry red diesel and white diesel or separate fuels.

The rules surrounding red diesel use in backup generators changed in April 2022, resulting in commercial generators losing access to the rebated fuel. white diesel, or a cleaner burning alternative called HVO fuel.

This depends on the make and model of your furnace. A rule of thumb is if your boiler is vertically conventionally fluid then you will be able to use gas oil to heat your home.

Yes, red diesel can be used for heating and powering a pleasure craft within UK waters.

Diesel used for propelling private pleasure craft can no longer benefit from a reduced rate of duty – it’s subject to duty at the full rate.

When purchasing red diesel for your boat, you need proof of its intended use such as a VAT certificate or letter from a boating club to demonstrate to the fuel supplier that it’s for onboard use only.

Red diesel continues to be available in marinas across the UK, but recreational boaters must pay the full rate of duty when purchasing fuel for the purposes of propulsion. Red diesel used for domestic purposes, such as heating or electricity generation, can be purchased at the reduced rate of duty.

Recreational sailors that buy diesel for their vessel must declare to the supplier if they intend the fuel to be used for propelling a private pleasure craft. You must also declare what percentage of the fuel will be used for propulsion (as opposed to domestic purposes such as heating or electricity generation).

Crown Oil supplies red diesel for boats across the UK. Call 0330 123 1444 for a competitive quote.

When it comes to storing oil safely and effectively, every situation is different. For this reason, the following recommendations should only be understood as a general guideline, and a proper site survey should be conducted to determine your specific needs.

General oil storage requirements – This includes having a structurally sound storage tank. Other items required include drip trays, pumps, and ancillary equipment. The integrity of both tanks and ancillary products must be of a high standard and unlikely to leak or burst.

Structural integrity and maintenance of primary storage – A storage tank for red diesel should last around 20 years. However, it must also be maintained every year to prevent unwanted leaks and pollution. The tank must have an impermeable bund base and walls. Regular maintenance by a professional inspector will reduce the chances of small issues developing into significant problems and helps avoid costly damage for you and the environment.

Safety zone and maintenance recommendations – If you own a fuel storage tank then it’s advisable, where possible, to position it away from any areas which could facilitate the pollution of the environment. It is therefore advised not to build your tank outside of a building within 50 meters of a borehole or 10 meters from inland and coastal waters.

To read more about this topic, click the link below:

www.crownoil.co.uk/…/oil_store.pdf

Unfortunately not, although it’s a heavily rebated fuel which means the tax is much lower than other fuels. If you lost access to the rebated fuel in April 2022, you will need to purchase white diesel or a cleaner alternative such as white HVO.

Red diesel has a lower tax rate than regular diesel, but it’s still subject to value-added tax (VAT) and fuel duty.

Read our guide on the tax changes on red diesel that came into effect from April 2022.

You should keep accurate records of all fuels you have purchased to demonstrate that you haven’t been stockpiling and that you have started the transition to non-rebated fuels.

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.

No, you do not need a licence to buy gas oil, but you will need to sign an RDCO form (found here). However, the company selling red diesel or any other controlled oils (rebated bio blend, kerosene and aviation turbine fuel) must be registered with HMRC.

It is the responsibility of the dealer of controlled oils to make sure the fuel is being used legitimately, and they may pass on details about the transactions to HMRC which can be further used by the Road Fuel Testing Units (RFTU).

As a reliable, long-standing red diesel provider, we deliver the rebated fuel across the UK within 24-48 hours of purchase. Simply call us on 0330 123 1444 or fill out our online quote form and a member of our team will be in touch shortly.

If you use a small amount of red diesel or you don’t have a permanent onsite oil storage tank, then buying red diesel by the barrel or drum may be a preferable option for you.

Crown Oil supplies 205-litre oil drums of red diesel with national delivery at competitive prices.

Removing any surplus/unwanted fuel from your tank(s) can lead to potential risks to the environment if not carried out by a professional company.

Leaving red diesel which is no longer needed can also pose further potential hazards over time.

Our team of engineers is fully accredited and can uplift and remove unwanted gas oil with minimal disruption. Depending on its condition and quantity, you may even receive payment for the fuel.

Learn more on our fuel uplift page.