- Shepherd Partnership
Changes to who can continue to use rebated fuel (red diesel) from April 2022
From 1st April 2022 many current users of cheaper red diesel (gas oil) will be banned from doing so as the rules are becoming more restrictive. Legislation has not passed through Parliament yet so may be subject to change but those affected need to be aware of it early enough so that they can plan ahead and run their stocks down to make sure they are ready.
Businesses operating in the construction sector are likely to feel the impact of these changes significantly. Heavy plant and equipment of all kinds such as cranes and bulldozers used for construction purposes will no longer be allowed to be fuelled by red diesel. The construction industry will be further affected as they will no longer be able to use cheaper red diesel for heating and power generation on-site.
It is not only construction who will be affected. Red diesel will no longer be allowed to be used in other businesses and applications. Further examples of those likely to be impacted are landscapers, leisure businesses, manufacturing, road maintenance, haulage and logistics, waste management and gas oil will no longer be able to be used for commercial heating.
Certain users of gas oil, for example in agriculture and horticulture or for non-commercial heating or power generation uses, are not affected by the change.
Further information and guidance on how to prepare for this can be found on Gov.uk.