Frequently Asked Questions about Red Diesel: Laws, Taxes, Usage, and More

As a result, the UK was required to align the tax treatment of red diesel with that of regular diesel.

Compass Fuel Oils can only supply red diesel to the following sectors:

– Commercial boating industry, including fishing and inland water freight industries and passenger ferries.

– Non-commercial power generation, such as hospitals and off-the-grid households

– Agriculture, forestry, horticulture and fish farming

– Passenger, freight and maintenance vehicles that run on rail tracks

– Non-commercial heating, such as off-the-grid homes, places of worship and town halls.

– Travelling funfairs and circuses

– Amateur sports clubs, including gold courses.

The industries that are mentioned above are not allowed to use red diesel and must use white diesel.

The government has provided a full guide to help prepare for the change in tax – but our friendly experts are here to help you.

Red diesel is not entirely exempt from tax. It is subject to a reduced rate of excise duty compared to regular diesel, in recognition of its specific uses in off-road vehicles and machinery. However, the tax treatment of red diesel varies by country and is subject to specific regulations and conditions.

If the fuel is not used as road fuel, then it is classed as a tied oil. To request a repayment or apply a tax rebate for your fuel, HMRC must first approve it.

To request a repayment or apply tax rebate for your fuel you need to contact

Any use of red diesel in a road vehicle on a public highway is illegal, as it is considered tax evasion. You can find more information on the gov.uk site.

There is no fixed or maximum fine for illegally using red diesel, so the cost will depend on the severity of the illegality displayed in the usage of the fuel.

For example, Her Majesty’s Revenue and Customs (HMRC) may simply issue you with a fine, but they could also charge you to remove the red diesel from your vehicles, charge you to clean out the fuel tanks and filters, and they could even charge you the missing price difference for the length of time you’ve been using red diesel.

– Travelling fairs and circuses

– Fuel used for non-commercial purposes – electricity generation and heating

– Agriculture, horticulture, fish farming and forestry

– Rail transport

– Community amateur sports club and gold courses

– Sailing, boating and marine transport (excluding private pleasure craft in Northern Ireland)

The following industries and applications have lost access to rebated fuels:

– Commercial generators

– Commercial heating

– Construction

– Haulage

– Leisure

– Logistics

– Manufacturing

– Mining and quarrying

– Ports

– Plant hire

– Road maintenance

– Waste management

The fuel should be stored in approved, secure tanks with safety features such as bunding to prevent spills. Farms are required to have spill prevention and control measures in place, including regular inspections of storage tanks.

Environmental protection regulations must be followed, including obtaining permits and managing the risk of contamination. Farm operators are also required to keep records of red diesel storage, usage, and disposal, and may be subject to inspections by regulatory authorities to ensure compliance with relevant laws and regulations.

However, there is an exception to the rule if you’re a farmer who needs to gain access to more than one bit of land which is divided by a public road; as long as you travel no further than 1.5km, you can drive on the public highway.

Other exemptions to the rule are farmers using their tractors for gritting in bad weather.

– Vehicles and machinery used in agriculture, horticulture, fish farming, and forestry, including additional activities such as cutting verges and hedges, snow clearance, and gritting roads.
– Propelling passenger, freight, or maintenance vehicles designed for rail track operation.
– Heating and electricity generation in non-commercial premises, such as homes, places of worship, hospitals, and town halls, as well as off-grid power generation and non-propulsion uses on permanently-moored houseboats.
– Supporting community amateur sports clubs and golf courses, including activities like ground maintenance, heating, and lighting of clubhouses and changing rooms.
– Fuel for all marine craft refueling and operating in the UK, excluding the propulsion of private pleasure craft in Northern Ireland.
– Powering machinery, including caravans, used by traveling fairs and circuses.

It all depends on the type and model of your furnace. Generally, if your boiler operates with conventional vertical fluid, you can use gas oil to heat your home.

Rebated fuel (red diesel) is cheaper than white diesel (DERV) because of a lower fuel tax required to pay on it.

Red diesel is widely available in the UK, but Compass Fuel Oils stands out for its reliable and reactive service. With over 20 tankers and strategically located depots, we offer faster deliveries. Our diesel comes straight from the refinery, ensuring top quality, and our bulk buying power means competitive prices.

if you use small amount of red diesel or gas oil or don’t have an oil storage tank to store your fuels and oils, then buying barrels of red diesel could be a preferable option for you.

Compass Fuel Oils supplies next day nationwide delivery of 205L drums red diesel.

Technically – Yes! Although the red dye can be removed from the fuel, doing so is an entirely illegal process. The intricacy of this process varies and using any method to remove the red dye is known as fuel laundering and can land you with a prison sentence.

However, it is important to note that all these names refer to the same fuel and are governed by the same laws regarding their usage.

Additionally, there are other grades within BS 2869 for kerosene that is used as home heating oil, and other specifications for heavier fuel oils.

The fuel properties are seasonally adjusted to maintain good low-temperature operability.

It’s also worth noting that Gas Oil exceeds the latest requirements of relevant British Standard Specification BS 2869 Class A2.