As a popular fuel choice for agricultural purposes, red diesel has long been an essential resource for farmers and businesses. However, regulatory changes have raised questions about its legal use.
At Northern Oil, we want to clarify these regulations and help you understand whether you can still use red diesel legally for your heating and agricultural needs.
What is Red Diesel?
Red diesel, also known as gas oil, is a type of diesel fuel that has been coloured red for identification purposes. It is commonly used for off-road vehicles and machinery and it is taxed at a lower rate than regular diesel. This makes it a cost-effective solution for agricultural operations.
The Legalities of Red Diesel Use
Red diesel has historically been used in various sectors at a reduced tax rate. However, in April 2022, the UK government introduced a ban on the use of red diesel for most non-essential sectors, particularly in transportation. The ban was implemented as part of the government's push towards reducing carbon emissions and encouraging cleaner energy sources.
However, there are still instances where red diesel remains legal to use:
Agricultural Use: Farmers and landowners can continue to use red diesel for agricultural purposes, including machinery used for planting, harvesting, etc. as long as the purpose of the activity is to create an agricultural product. You can not use red diesel in machinery used for non-agricultural activities, such as transport, gardening, or horse care.
Community Amateur Sports Clubs; Registered CASCs (see section 658, Corporation Tax act 2010) and golf clubs can use red diesel to maintain land and run machinery (other than vehicles).
Heating and Energy: Red diesel can still be legally used in heating systems, and for electricity generation in domestic and non-commercial premises, or premises that provide a public service that is not for profit. However, it can not be used for heating in commercial properties or any premises in which the purpose is making a profit, eg. A fee paying school, or hospital.
Industrial Heating Oil (IHO): IHO is a rebated fuel which can be used as an alternative to red diesel in commercial premises, specifically for
heating only. Northern Oil can supply your IHO requirements in Nottinghamshire, Leicestershire and Derbyshire, please contact us to find out more, or look on our website.
Non-Agricultural Uses: For all other uses, such as vehicles used for business transport, construction, garden maintenance or horse care/livery, the use of red diesel is now prohibited. If you operate a commercial fleet or transport goods for business purposes, you will need to switch to white diesel, which is subject to full taxation.
For full Government guidelines on the use of red diesel, visit
Gov.UK Excise Notice 75.
Ensuring Compliance with Regulations
It's crucial to ensure that you comply with the regulations governing red diesel use. At Northern Oil, we supply red diesel specifically for agricultural and heating purposes. Our customers are informed about the legal requirements and can rest assured that they are purchasing compliant fuel.
We recommend keeping detailed records of how and where the fuel is used, especially if it’s for agricultural operations or heating. This documentation can help in case of an inspection from HM Revenue and Customs (HMRC).
Why Choose Northern Oil?
At Northern Oil, we are dedicated to providing high-quality, legally compliant
agricultural fuels and heating oils, including IHO. As a trusted red diesel supplier, we offer reliable delivery services across Nottingham and surrounding areas. Our products are tailored to meet the needs of farmers, landowners, and homeowners, ensuring you get the best value while staying compliant with the latest regulations.
If you're looking for red diesel or any other heating oil solutions, don’t hesitate to
get in touch with us. We’re here to help you navigate the changes and ensure you’re using the right fuel for your needs.
