Huge diesel changes are set to be introduced in April across the UK, with the Government ending the use of rebated diesel - sometimes know as 'red diesel'.
Red diesel is diesel which contains red dye and other chemical markers to indicate that it is rebated diesel and has therefore been subject to less fuel duty than normal (white) road fuel diesel.
From April 1, rebated diesel and rebated biofuels will no longer be allowed to be used as they are currently.
From this date, it will no longer be legal to use red diesel for non-road mobile machinery such as bulldozers and cranes or to power mobile generators on construction sites.
People will only be able to use rebated fuels for specific purposes, including when using machines, vehicles, vessels and appliances.
For those who will no longer be able to use rebated fuel, they will need to use diesel or biofuel which the full rate of fuel duty has been paid for.
The rebated fuels affected by these changes are: rebated diesel, rebated Hydrotreated Vegetable Oil (HVO), rebated biodiesel and bioblend, kerosene taxed at the rebated diesel rate and fuel substitutes.
According to the Government, red diesel use accounts for 15 percent of total diesel for the UK.
The reduced rate costs around £2.4billion a year in revenue compared to if duty was charged at the main rate.
Rod McKenzie, director of policy and public affairs at The Road Haulage Association slammed the Government's decision and has said: “UK hauliers have done a heroic job in keeping the economy running during the Covid crisis.
“Punishing them with a red diesel hike tax is damaging to their business and we urgently call on the Government to reconsider this move.”
They argued that it would lead to a £1.4billion hit to small hauliers and businesses if the changes were to go ahead in April.
