There are many different types of fuel, from your simple coal to more complex formulas of petrol. Red Diesel seems to be causing quite a stir in the world of fuel at the moment. In fact, this fuel makes up over 15% of the total diesel used. Unsure what this is and what it is used for? Well, the experts at FAST Exocet will explain all, and why you need to know about it.
What is Red Diesel?
This is a fuel that is used in the engines of off-road vehicles and machinery, as well as many other industries such as;
- Construction – The use of cranes, diggers and machinery makes a company eligible to use red diesel fuel. In the construction world, red diesel is used on-site and cannot be used in vans that will later use the roads.
- Agriculture – The farming industry uses red diesel in tractors and machinery. Tractors can use the roads as long as the purpose is to reach farmland which is divided by a public road.
- Factories – Vehicles used for moving items around the warehouse and factory land.
- Schools – Heating systems in these buildings often use this fuel.
- Hospitals – Due to the large-scale heating and boiler systems, red diesel may be used.
- Councils – Vehicles used for gritting purposes and ride-on lawnmowers are also allowed to use red diesel.
In very broad terms this fuel is the same as regular diesel that is used within on-road vehicles. However, a slightly different fuel standard can apply and as there is a tax rebate on it would be considered tax evasive and law-breaking if used on the road. Due to this tax rebate this fuel is produced with a red dye added to it, hence the name Red Diesel – the fuel may be referred to as Blue or Green Diesel in other countries due to the use of a blue or green dye instead.
*image* The dye acts as a marker so that tax services, like HMRC, can accurately test for its use within its reserved industries.
What is the tax rebate on Red Diesel?
According to the Gov.uk website, the following applies: “Gas oil intended for use in diesel engine road vehicles (DERV) has a duty rate of 57.95 pence per litre (ppl). Gas oil intended for other uses is entitled to a rebate of 46.81ppl giving an effective rate of 11.14ppl.”
Please note that on very rare occasions HMRC issue licences that allow red diesel to be used in on-road vehicles, but these are exceptional cases and Red Diesel should be kept only for the use in off-road vehicles as the law stipulates.
Does Red Diesel have any particular storage requirements?
Like every fuel storage regulation, these vary depending on the:
- Storage facility,
- Where it is kept,
- Its age,
- The fuel’s intended purpose.
For clear and concise regulator procedures we would recommend contacting the local environmental regulator, as like with every fuel, improper fuel storage can have a devastating impact on the environment and incurs more cost to you.
What fuel additive can I use with Red Diesel?
There are many different fuel additives available on the market and all for different purposes, however, we would recommend our very own Gasoil Supreme.
This fuel additive includes a number of components designed to improve fuel performance and to keep out any water it has a demulsifier. Gasoil Supreme protects against premature wear in fuel pumps and injectors, by increasing lubrication within the engine to reduce friction.
We were recently featured in Farmers Weekly, regarding the current problems we are facing with Red Diesel and the FAME value of biodiesel. You can read more about this here: https://bit.ly/3dr5miD
Should you have any questions regarding Red Diesel and gas oil additives, or would like some advice then please contact our expert team by calling 01743 761415 or fill out our online form.