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Red Diesel Duty Changes

Since April 2022, the rules around red diesel and other rebated fuel usage has changed, limiting the number of sectors and industries legally able to use them.

Crown Oil

Red Diesel Duty Rules

Since April 1st 2022, the rules around rebated red diesel duty and rebated biofuels have changed.

The move was designed to help the UK achieve its 2050 net zero carbon target by reducing commercial reliance on fossil fuels.

Certain industries are no longer permitted to use fuels at a rebated rate and as a result, have had to switch to alternative fuels such as white diesel, Industrial Heating Oil (IHO) and Hydrotreated Vegetable Oil (HVO).

As one of the UK’s leading fuel suppliers, Crown Oil has been supporting businesses with the right fuel choices since the red diesel eligibility changes.

The fuels affected: rebated red diesel, rebated HVO, rebated biodiesel/bio-blend, fuel substitutes

Sectors affected by the red diesel changes

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

Fuel changeover experts

Whether you want to switch to a cleaner burning fuel like HVO or you’re simply changing fuel types, we can handle every element, providing end-to-end consultancy and guidance while ensuring your tank is compliant with all relevant standards.

Watch our video which explains how we can help your business with the red diesel eligibility changes.

Why has red diesel duty changed?

Discover the reasons for the new red diesel rules, including how to make sure your business complies with the duty rules to avoid fines.

How can Crown Oil help?

  • Uplift and buyback your rebated fuel 
  • 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

We can help you tackle the immediate challenges of red diesel replacement and navigate the most cost-effective route to lasting compliance.

Discover our cleaner alternative fuels

Our alternative fuels, such as HVO fuel, IHO and GTL can help your business drastically reduce its emissions.

We have a wide range of sustainable solutions on offer to help streamline your clean-burning fuel energy transition.

Key points to note about the red diesel duty changes

  • If you haven’t already, you must have moved to full-duty fuels by April 1st 2022
  • You will not be required to clean and flush your tanks before moving to full duty fuels
  • Save all your invoices and receipts to prove that you haven’t been stockpiling and have been purchasing full-duty fuels
  • Non-commercial bodies can continue to purchase red diesel for heating and electricity generation

Why not download our PDF?

Click here to download

Frequently Asked Questions

If I’m not one of the exempt industries, can I purchase red diesel from the 1st April 2022?

Unfortunately not, you must now purchase white diesel or a cleaner alternative such as white HVO.

Can I stockpile my red diesel?

No, and HMRC advised any non-exempt customers to plan their red diesel purchase/usage up to the 1st April 2022. Make sure you only buy what you will use by this date.

What do I do if I have rebated diesel fuel in my storage tank?

If you have any surplus fuel in your tanks after 31st March 2022, 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 keep records of any sales or disposal

I am a commercial business that is moving to white diesel for its machinery, will I need to flush out its tank?

No, the HMRC understands there may be a period of time where a red indicator maybe present in a machine or vehicles tank.

What records should I be keeping?

You should start 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.

What if I am found to have traces of marked diesel in my tanks/vehicles after the 1st April?

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 tax changes affect HVO?

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 eligble to use red HVO, then you will need to switch to white HVO.

To make sure your business is compliant, call our fuel experts today on 0330 123 1444 to discuss your current fuel usage and see how we can help supply you with the right fuels and lubricants for your business.

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