What Exactly Is Red Diesel and What Are The Laws Around Using It?

If you operate an agricultural, industrial or logistics business, it’s vital to ensure you can save as much money as possible on fuel. This ensures that you remain competitive and can keep a high level of service for your customers. Red diesel comes with beneficial tax treatments for business, but what exactly is it? Here, we provide you with more detail.

Although red diesel may sound as though it’s made using different production techniques to regular diesel, it’s exactly the same fuel. The only difference when using red diesel is that the fuel is dyed red and it isn’t available for the wider public. This fuel is only available for those using vehicles and machinery in an industrial, agricultural, construction or public sector capacity. Red diesel gets a beneficial tax exemption, which is why it is not permitted for use in road-going vehicles. 

The tax exemption that red diesel enjoys means that it cannot be used in cars on the road. Using this type of diesel as fuel in your car is considered a form of tax evasion and you can be prosecuted if found using it. If found using red-dyed diesel, your car may be impounded and you could find a huge bill in the post with the amount of tax you owe the government. In the most serious cases, perpetrators can be imprisoned for up to two years. This type of diesel must also be stored securely by law in a tank that should last around two decades.

Here at Northern Oil, we’re leading suppliers of oil and fuel in Nottingham. As trusted and reliable suppliers, we can provide our products and services to Nottingham, Leicester and Derbyshire. We have more than a 100 year of heritage and always endeavour to provide our clients with high-quality products so we can continue serving them for another 100 years.

To find out more about our services, please feel free to contact us today. You can find us at Northern Oil Co. Ltd, Wollaton Road, Nottingham, NG8 1HJ. Alternatively, call us on 0115 928 5250 or email us at sales@northernoil.co.uk.