On the 1st April 2022, red diesel (rebated gas oil) will no longer be available to buy for your diesel generator. Current UK government legislation states that commercial businesses will no longer be able to purchase red diesel at that time.

Red diesel's primary purpose is to power business critical emergency or life supporting generators. Red diesel is about 15% of all the diesel used in the UK and produces almost 14 million tonnes of carbon dioxide a year.  

The UK government announced in the 2020 Budget, that it would remove the entitlement to use red diesel and rebated biodiesel in most sectors from 1st April 2022 to help meet its climate change and air quality targets. The tax changes being introduced from the same date will ensure that most red diesel consumers use fuel taxed at the standard rate for diesel.

From 1st April 2022, you will not be able to legally buy red diesel, so you will need to look for an alternative to red diesel to top up and run your generator.

Because of the changes in legislation on the supply of red diesel (i.e., commercial sites will no longer be entitled to use rebated fuel from 1st April 2022), the government has now stated that fuel purchased from 10th June 2021 must be used by 1st April 2022, or the duty will need to be paid on this fuel. Red diesel bought prior to 10th June can remain in the tank and be used without any additional restrictions. It would be wise to have all purchased records for red diesel in case of an HMRC audit.

There is a simple option to replace this fuel. Instead of red diesel, you can simply buy white diesel to power your generators. White diesel can also be mixed with red diesel fuel currently in your tanks, as they are chemically identical and will pose no risk to your equipment.

You are not obligated to drain your red diesel stock and clean your tanks before the 1st of April 2022. However, you may wish to drain down and dispose of your red diesel fuel and clean the tank if you want to move to an alternative fuel – remember to make sure any new fuel is compatible with your generator!

If your tank has been neglected over the years, this is a good opportunity to clean your tanks prior to moving to a new type of fuel.

If you have any questions about this please contact us here.