Let’s start with the basics around the Reform of red diesel and other rebated fuels entitlement, with the Who, What, When, Where, Why, and How?
Who is affected?
- Anyone who is currently entitled to use red diesel and rebated biofuels.
What is changing?
- From Friday 1st April 2022, the industries allowed to use red diesel and rebated biofuels will be restricted, meaning sectors such as construction, highways, and rail cannot use the fuel after this date.
- After 1st April, white diesel or biofuels, such as Hydrotreated Vegetable Oil (HVO) can only be used in vehicles or machinery in place of red diesel.
When is it happening?
- The change comes into effect on Friday 1st April 2022. This means red diesel cannot be added to vehicles or machinery used in industries that are excluded from the government list.
- Any remaining red diesel already in the vehicle or machinery tank prior to Friday 1st April 2022 can be used with evidence. See point 5 here
Where is it happening?
- The change will take effect to all the U.K
Why?
- The government is making these changes to help reduce the country’s carbon emissions. Ideally, there is a push to convert to HVO fuel which has a huge reduction of Co2 when compared to traditional diesel.
- By removing the tax relief on red diesel, the government is aiming to reduce the commercial use of polluting fuels.
How can Garic help?
- Starting from today, Friday 4th February 2022 until Red D-day, we will post updates and reminders every Friday to help you with the upcoming change and help minimise any confusion.
- HVO fuel can reduce carbon emissions by 90% so this may be the most sustainable fuel, depending on the origin of the fuel.
- We are currently working with our suppliers to develop a seamless switchover plan, which we will announce shortly.