Red diesel, also known as gas oil, is a variant of white diesel that comes in red due to a distinct red dye mixed in it. It is a low-taxed fuel and is subjected to strictly regulated use, i.e. in off-road vehicles and domestic heat and power generation. The reason behind mixing the red dye is to make it easily recognisable and deter its illegal use.
This all happened in April 2022 with the tax and duty changes that were implemented on the red diesel. These changes reduced the duty rate on red diesel to 11.57 ppl, which is extremely low compared to the duty rate on white diesel, which is 57.95 ppl. This initiative was a part of the government’s efforts to reduce the nation’s overall carbon footprint.
What is the Price of Red Diesel in the UK?
The price of red diesel is not fixed. Rather, it varies for several reasons, including the quantity you want to buy or the location of your property. On average, its price ranges from ÂŁ0.78-ÂŁ1.00 per litre, depending on these factors. Its price also depends on several other factors that we will discuss in detail here.
However, if you want to buy red diesel for your use, you can contact us at 123 Oil for the best prices. We will deliver your order to your location anywhere in the UK within 1-2 business days.
What Affects the Red Diesel Price?
There are several factors that influence the cost of red diesel per litre. These factors include the following:
Global Crude Oil Prices
Since red diesel is derived from crude oil, its prices have a major effect on the cost of red diesel. Crude oil prices can be affected by production cuts, geopolitical events, and fluctuations in global demand.
UK Fuel Duty Policies
The red diesel tax changes in 2022 removed many industries from using the red diesel, which altered demand patterns significantly. Sectors that still qualify saw different pricing pressures compared to those now using white diesel.
Seasonal Demand Variations
Red diesel also experiences temporary fluctuations in demand during winter and farming season, which can lead to a temporary increase in price.
Logistics & Regional Supply
Transportation costs, refinery proximity, and local distribution networks affect pricing, especially in remote areas where fuel must be hauled over long distances.
Storage & Compliance Costs
Red diesel requires proper storage (bunded tanks, regular inspections) and adherence to HMRC regulations. These factors can indirectly influence overall expenses for businesses.
Does the Bulk Order Affect Red Diesel Price?
Yes, purchasing red diesel in larger quantities typically lowers the price per litre due to bulk discounts and reduced delivery costs. Suppliers often offer better rates for orders exceeding 5,000 litres, as full tanker loads spread transportation expenses more efficiently. Contracts for regular bulk purchases can also secure stable pricing, while small, one-off orders may incur higher per-litre costs from delivery fees.
However, bulk buying requires proper storage infrastructure. Remote locations with fewer bulk buyers may see less competitive pricing due to limited supplier options.
Conclusion!
Red diesel prices are affected by several factors, including fuel demand, logistics and the quantity of your order. If you want to buy the fuel at the best prices in the UK, you can contact 123 Oil. We have several oil depots across the UK to ensure doorstep delivery of your order within 1-2 business days.
