The Government announced changes to red diesel taxation back in March 2021. From 1st April 2022, rebated diesel (known as red diesel) and rebated biofuels will no longer be allowed to be used as they are now.

As a result of the revisions to current taxation, many sectors currently using red diesel will no longer receive tax relief and will have to switch to alternative fuels. 


What is changing?


By April 2022, many sectors will no longer be able to use red diesel as they will have to use a different fuel that is taxed at a standard rate for white diesel.

In an effort to reach the UK’s 2050 net-zero emissions target, the laws are changing. While the changes will encourage the development and use of cleaner, more sustainable fuels, they will also present a challenge for a wide range of sectors and businesses.

Following the gas oil duty changes, some businesses may have assessed their usage and planned their transition to an alternative fuel, but other businesses remain uncertain as to whether they remain exempt and what the financial implications are of switching from red to white diesel fuel.


Who will be affected?


Hopefully, we can shed some light on some of the grey areas that surround the upcoming changes. Red diesel is currently used in machinery, generators or for heating purposes in the following sectors, so you will be affected by the changes.

  • Construction, mining, and quarrying
  • Manufacturing
  • Airport activities
  • Plant hire, transportation/ logistics, waste management
  • Ports and harbour activities
  • Highway maintenance


The main change for the countryside is that red diesel will no longer be legal in construction machinery. Farmers may be affected. Though agricultural work will remain a key permitted use for red diesel, anyone in the industry wishing to supplement their income with construction work will have to switch.

Farmers who hire in machinery in the future may have to be careful about the use of red diesel as plant hire companies will likely require them to use white diesel or face a hefty bill for flushing out the tanks.


By the 1st April 2022, red diesel can only be supplied to your business if the application is for the sole purpose of the following:

  • Fisheries, horticulture, and forestry
  • Flood and snow removal, including gritters
  • Rail transportation, including passenger, freight, and maintenance vehicles
  • Water transportation, including passenger ferries and water freight
  • Powering the machinery (including caravans) of travelling fairs and circuses
  • Non-commercial heating in homes, places of worship, NHS hospitals, town halls and permanently moored houseboats
  • Golf courses (including grounds maintenance, and the heating and lighting of clubhouses, changing rooms, etc. ), amateur sports clubs, community sports centres.


What does this mean for your business? 


Depending on your industry and the application to which you are using red diesel, this will have varying impacts on your business. For the businesses which are affected by the changes, it will mean significant cost increases by switching to regular white diesel.

According to government advice, users of vehicles and machinery losing their red diesel eligibility should exhaust their existing stock of red diesel before 1st April 2022. After this date, businesses will not be able to use up their remaining red diesel. There is a likelihood of on-site spot checks and fines for noncompliance, according to the government.

For more in depth information on the forthcoming changes visit the official GOV website. 


Quad Fuels will still remain a trusted supplier for your fuel needs. Our team is here to support your business through the transformation from red diesel in the next coming months. If you have any questions regarding the change please don’t hesitate to contact us.