What is Red Diesel?
Red diesel is a variant of white diesel that has a red dye mixed in it to distinguish it from DERV. It has almost similar chemical and physical properties as the white diesel, except sulphur content and colour.
In an effort to reduce its carbon footprint, the government of the UK has imposed sanctions on the usage of red diesel after the tax changes in 2022. In today’s blog post, we will discuss these sanctions and tax changes in detail. We will also shed light on who can and cannot use red diesel.
Who Can Use Red Diesel After 2022?
Although the government banned the use of gas oil in several sectors after the tax changes in April 2022, there are still many applications where it is legal to use gas oil. Below is a list of who can use red diesel after the duty changes:
Agriculture & Horticulture: Powers farming machinery, forestry equipment, fish farming systems, tractors, and combine harvesters.
Oil & Gas Extraction: Operates extraction machinery and drilling rigs.
Off-Grid Heating: Heats community buildings, rural homes, and places of worship without mains gas access.
Emergency & Backup Power: Generates electricity for state schools, hospitals, and essential services during power outages.
Rail Transport: Powers maintenance vehicles, freight trains, and locomotives.
Maritime Use: Fuels commercial marine craft, passenger ferries, and fishing vessels (private leisure boats excluded).
Community & Leisure: Maintains golf courses and amateur sports clubs and powers equipment for travelling fairs and circuses.
Public Safety & Maintenance: Clears snow, ice, and floodwater in emergencies.
Who Cannot Use Red Diesel After 2022?
After the tax changes on red diesel in April 2022, the government has banned the use of red diesel in several sectors, including the following:
Construction & Roadworks: All mobile construction machinery includes road rollers, excavators, and diggers.
Manufacturing & Warehousing: All material handling equipment in factories and warehouses, such as forklifts and industrial boilers.
Transport & Logistics: All road-going freight vehicles and cargo equipment, such as delivery vans, airport tugs and port-side loaders.
Leisure & Hospitality: Machinery, such as utility vehicles, lawnmowers and power generators in amusement parks and other establishments.
Miscellaneous Banned Uses: Private pleasure craft such as yachts and narrowboats, as well as commercial workshops like blacksmiths, bakeries, or other profit-driven trades.
Why Red Diesel Taxation is Changing?
Red diesel generates significantly greater CO₂ emissions than contemporary fuel alternatives. Currently representing approximately 15% of UK diesel consumption, its use results in nearly 14 million tonnes of harmful carbon dioxide emissions each year. This environmental impact directly contradicts Britain’s commitment to achieve carbon neutrality by 2050.
Consequently, UK authorities have reformed red diesel taxation policies to incentivise the adoption of more sustainable fuel options that are subject to regular tax rates. These greener alternatives will substantially decrease both environmental damage and overall carbon output.
What are the Alternatives to Red Diesel?
Since the government has banned the usage of red diesel in several commercial and industrial sectors, there are several viable options that can serve as alternate fuels for those sectors. These fuels are not only derived from sustainable sources but also contribute to the government’s green initiative due to extremely low emissions. These alternate options include the following:
Industrial Heating Oil (IHO)
Industrial heating oil is designed to fulfil the heating requirements of commercial and industrial buildings, including offices, factories and warehouses. IHO possesses enhanced chemical and physical properties that allow it to become a viable alternative to red diesel. These properties include the following:
- High density and viscosity
- Requires pre-heating to burn
- Higher flash point
- High heating value
Hydrogenated Vegetable Oil (HVO)
HVO, or hydrogenated vegetable oil, is a sustainable fuel derived from animal fat and vegetable oils. It is manufactured by processing raw materials under high pressure and temperature conditions and then refined to improve its performance and remove any impurities. Its properties include the following:
- 100% bio content
- High cetane levels
- Low sulphur content
- Extremely low emissions
Conclusion
Although after April 2022, the government has banned the use of gas oil for several sectors, it is still allowed to be used in many domestic and commercial applications. However, for the sectors which are disallowed to use red diesel, 123 Oil provides high-end industrial heating oil and hydrogenated vegetable oil. You can also buy red diesel from us at the lowest prices. You can book your order by contacting us, and we will deliver it to your doorstep.
