Red diesel changes looming

Restrictions on the use of rebated gas oil (red diesel) coming into force from 1 April mean that the fuel will only be legally usable for a much narrower set of purposes from that date. Most significantly for hauliers, refrigeration units on lorries will no longer be able to run on red diesel.

Rebated fuel can only be used up after 1 April if it was legally put into a vehicle or machine before that date, so HMRC has warned that companies ordering supplies of the fuel between now and 1 April should “only order the amount you expect to use by that date”.

If, after 31 March, surplus fuel remains, operators will need to either sell or give it to somebody who is allowed to use it, or a Registered Dealer in Controlled Oil (RDCO); or dispose of it via an approved waste oil recycling or disposal firm. Records will need to be kept of how and when it was disposed of or sold.

Full advice is available from HMRC via the gov.uk website.