When powering your boat, the choice of fuel can be an important consideration. Whether your boat is for personal or commercial use, you will need to make sure that you are using the right type of fuel to meet your requirements, and to stay in line with regulations. Red diesel is a type of fuel that is available for use for boats, and has a reduced tax rate, which makes this very appealing. However, there are a number of considerations to bear in mind for using red diesel for boats in line with British regulations.
What are the considerations for using red diesel for boats in line with British regulations?
Red diesel is used across the UK in a wide range of industries, including fishing, agriculture, and transportation. However, the use of this is strictly governed by the Hydrocarbon Oil Duties Act 1979. Under this act, red diesel is a marked gas oil and as such, has a reduced rate of tax because it is designated for non-road use. As part of the non-road use, red diesel can be used legally for maritime transport, as the reduced tax rate is intended to support industries such as fishing, agriculture, and transportation. But how can red diesel be used for boats, in line with the regulations and standards? Well, there are several factors to consider, including:
- Restrictions for use
- Private and commercial use
- Penalties
Restrictions for use of red diesel in boats
While some boat owners are allowed to use red diesel, there are restrictions on when this fuel can be used.
Excise Notice 75 (Using rebated fuels in vehicles and machines) permits all types of boats and ships to use red diesel at any time, except for private pleasure craft (PPC).
A machine or appliance that is permanently on a boat or ship can also use red diesel. This does not include any machine or appliance on a PPC that uses the same fuel supply as the engine that propels the craft.
Excise Notice 554 (Fuel used in private pleasure craft and for private pleasure flying) sets out the definition of PPC and the provision to use rebated fuel for propulsion.
Penalties
There are strict and significant penalties for non-compliance with red diesel regulations. These include fines and even the potential seizure of the vessel. It is therefore crucial for boat owners to be aware of and adhere to the regulations governing the use of red diesel. Many marinas and fuel suppliers provide clear guidelines to help boat owners understand their obligations and responsibilities in this regard.
Here at Compass Fuel Oils, we are the UK's leading provider of fuel oils like red diesel and AdBlue, as well as home heating oil.
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