Red Diesel Duty: Are you aware it's changed?

On 1st April 2022 a big change occurred in the fuel industry, as the red diesel rebate was removed for most sectors. This means many users will have to switch to white diesel, costing an extra 46.81ppl. 


The increase in cost is clear and simple for us all to calculate, but the requirements of suppliers and users are less so.

Do you have to remove old stock? Clean your tanks? Can you keep buying gasoil until 31st March? 


Some users are seeing this as an opportunity to switch to Hydrotreated Vegetable Oil (HVO), a renewable fuel that reduces carbon emissions by 90%. But this poses even more questions: Does HVO avoid the duty rebate? Can it be mixed with diesel?


As a leading supplier of high-quality fuel and sustainable solutions, WP Group is best placed to offer guidance on these questions, provide support through these legislation changes and advise you on the expectations, requirements, and the next steps for your businesses. 


Get in touch today at 0800 980 6172 or use the form below to speak to one of our experts who are more than happy to help with any questions you have.


What is the red diesel duty change?


Unlike white diesel, red diesel (otherwise known as off-road diesel) is entitled to a rebate of 46.81ppl – effectively giving it a duty rate of just 11.14ppl. 

From 1st April 2022 however, red diesel duty will be removed for most sectors, meaning many users will have to switch to diesel or biofuels with full rate of duty. 

Users of red diesel are not expected to clean their fuel tanks or other infrastructure when the change comes into force in April. 


Furthermore, users who are losing the entitlement are expected not to purchase any red diesel to use after 31st March 2022 and should rundown existing rebated stocks before this date. Any leftover rebated fuel in your tank after the 31st March 2022 may be sold or given to someone who is authorised to use it, or to any RDCO, or disposed via an approved waste oil recycling company. Customers must start using diesel or biofuels immediately from 1st April 2022. You might be asked to provide evidence of receipts of red diesel that was put in before the legislation changes and you should be able to demonstrate the use of the correct fuel after this date.


For the latest updates and information regarding the change, please visit the following GOV.UK webpage: 

Hydrotreated Vegetable Oil (HVO)


With the inevitable increase in duty on red diesel, if you operate in one of the sectors affected then this presents a real opportunity to re-evaluate your choice of fuel and switch to a sustainable, renewable replacement. 


HVO is a fossil free, low carbon drop-in diesel replacement product made from 100% renewable feedstocks. Due to having no FAME content, HVO significantly reduces risk of microbial growth and water ingress that standard diesel products can be susceptible to.


Switching to HVO will reduce your carbon emissions by 90% and improve air quality. Although not avoiding the red diesel rebate increase, many businesses are seeing the requirement for product change as a good opportunity to introduce a renewable fuel into their business.


We have a secure, competitive supply of HVO into the UK market and have done for over 5 years, delivering with the same high service levels we supply diesel products to our customers.


Talk to us today to understand more about HVO and how easy it is to make the switch.

Eliminate fuel theft – FuelSecure


With the value of the fuel product set to increase as a result of the red diesel duty change, it has never been more important to ensure security and traceability when storing large amounts of fuel onsite, whether it is diesel or HVO. We offer a FuelSecure technology, which is a fully automated fuel management solution that provides total control and security of your refuelling operation. 


FuelSecure is a chip and coil system that enables your business to track every fuel transaction on your site to the tenth of a litre, own use, or subcontractor, and to pre-approve and authorise any vehicles/equipment that require the use of your fuel facilities. 

Guidance and support 


If you have any concerns or questions around red diesel duty and the changes coming into force this year, please contact us.


Simply call 0800 980 6172, email or use our support request form below and a member of our team will be in touch. 

Red Diesel Duty support request

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