Red Diesel consultation

An interesting point - the 'preferred option', where the supplier continues to supply red diesel but collects extra duty from leisure craft results in a duty level of 54.68p/litre because the fuel is NOT ULSD.

The duty on ULSD is 48.35p/litre.

This was something I'd missed in earlier discussions....

Rick
 
Interesting Rick.

I wonder how busy Jersey fuel outlets will be ? There's alraedy another one that's just opened just inside Collette, within the last 7 weeks.

Come to that, I wonder about the viability of keeping the boat there, availability aside, the flights I've just paid were £22 + taxes and charges !

Adrian
 
Interesting read. So all this work to implement the EU decision will raise £10m-£15m in additional taxes (page 13) confirming the whole exercise is utterly pointless.
 
They say that they cannot supply the same fuel for different uses at different levels of duty, presumably to rule out just levelling the .20 duty hike onto red.

So surely they can only charge road duty at 48ppl not 54ppl?
 
48p is low sulphur diesel, most road users use this. "Normal" diesel can be bought cheaply on bulk by hauliers etc, the bulk discount off setting the extra duty
 
Because the EU stipulates that member states are not allowed to have differing levels of duty for the same fuel. Because non-ULSD for road use has a duty of 54ppl, then marine diesel must also have this duty level.

The red diesel derogation was our 'out' from this, but now that is going, we have to abide by the EU's Energy Products Directive, which states the above.

The EU minimum is just that, and the UK has chosen to stick another 20-odd pence on top. The only way now we're going to pay less for fuel is if this Government adjusts duty rates.
 
Though of course what the Govt really means is "Whilst it suits us, we'll abide by the EU regulations and charge the same duty rates across the board". Didn't stop them suggesting that they'd remove the duty when they went to road pricing though, did it? Which of course, we know they can't do (though they could reduce it but only as far as the EU minimum).

What would the fine have been if they'd ignored the EU? Bet it would be less than the rebate that Tony gave up at the last council of ministers meeting...

(Sorry, that was all a bit cynical /forums/images/graemlins/wink.gif)

Rick
 
Not entirely sure. And no one in the office has much of an idea either. Will look into it though. We were a bit blindsided by that to be honest, as we had been working on the assumption that marine red diesel was ULSD. But it's not, and I've just looked back at our red diesel investigation last year which found only one vendor actually supplying boats with ULSD.
 
So surely if we can assertain that there are no vehicles (or indeed anyone) using heavy oil (i.e. diesel other than ULSD) on the road, then we have a case for just applying the minimum £0.27ppl duty as this will apply to all users, current and future?
 
Ok, so if 'normal' diesel can be bought cheaply by hauliers at asuch a significant discount it offsets the extra duty, then surely so can boaters? I mean, you average mobo takes at least 500 litres a time.
 
Lets see now. All this palaver to get an additonal 0.06% revenue. Clearest example ever seen of political agendas overwhelming the sensible ideas of practical people. Good of HMRC to grasp that the costs of adding a tank to burn red for heating and lighting are high and likely not to be spent. I wonder what they will accept as a % use as that is the sort of thing they may well want for simplicity. A good time to let the liveaboard narrowboaters lead the debate?
 
As most of you know, this subject makes me bloody cross. I don't do that many miles and earn lots of money, so it wont hurt me much, but its the principle of it.
Will we all wait till they cut our willy's off and fry the attached balls, & then stuff the results up our bottoms? /forums/images/graemlins/confused.gif
 
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