The red diesel irony.

Sure more will come out later today, but latest from the Budget is that the government will withdraw the duty benefit for most sectors using red diesel, except for agriculture, rail, domestic heating & fishing. So, that means construction is really where their focus is.

Whether the 60/40 rule will continue is probably outside their consideration at this time, is my thought - probably no bad thing.
 
FARSCO said:
The 60/40 spilt is for ”heating“ so can’t see why it won’t stay
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Countries were allowed to set fuel tax rates subject to a minimum.
60:40 just meant we were paying tax equivalent to the EU minimum duty, allowing the UK to argue to keep red.
The words on what each portion was for were window dressing.
 
From the budget ;


2.232 Red diesel: Prohibition of use for propelling private pleasure craft – Private pleasure craft already pay the standard white diesel rate for propulsion. They will still be entitled to use red diesel for their heating use. Where they have one tank for propulsion and heating, the government will explore options that prevent them from having to pay a higher rate of duty on their heating use than they would otherwise have to pay. Details on the implementation of this power will be set out in due course.
 
'Where they have one tank for propulsion and heating, the government will explore options that prevent them from having to pay a higher rate of duty on their heating use than they would otherwise have to pay. '

Does this mean we will be forced to fill up with white diesel and then try to claim a rebate for the amount we will use for heating.? That's assuming there are pumps from which we can get white diesel of course.

But they haven't worked it all out yet and we know what the problems are, we've told them often enough. Just cross fingers they don't end up saying that if we want the heating fuel rebate we must install a second separate tank.
 
Red diesel: Removing entitlement – The government will remove entitlement to the use of red diesel and rebated biofuels from April 2022, except for agriculture (including horticulture, pisciculture and forestry), rail and for non-commercial heating (including domestic heating). The government will consult on whether the entitlement to use red diesel and rebated biofuels is justified for any other users, for example there is a strong case for continued use by ferries carrying paid passengers on the UK’s rivers and inland waterways, or public entertainment. Commercial boats on open waters, including ferries and fishing boats, will remain entitled to the Marine Voyages Relief so will not have to pay more for their fuel. This measure will incentivise businesses to improve the energy efficiency of their vehicles and machinery or look for greener alternatives. To support the development of alternatives that these businesses can switch to, the Budget has also committed to at least doubling the size of the energy innovation programme, accelerating the design and production of innovative clean energy technologies. (39)

Red diesel: Prohibition of use for propelling private pleasure craft – Private pleasure craft already pay the standard white diesel rate for propulsion. They will still be entitled to use red diesel for their heating use. Where they have one tank for propulsion and heating, the government will explore options that prevent them from having to pay a higher rate of duty on their heating use than they would otherwise have to pay. Details on the implementation of this power will be set out in due course.
 
Given the sensitive relationship between Brexit and the British fishing fleet I hardly think we were ever going to see a wholesale upheaval of marine diesel prices. The last thing fishermen need is a massive hike in their main expense. So red diesel will remain and nothing will change.

Heating oil is still exempt of road duty.

The construction industry may well moan a bit but they are looking down the barrel of some pretty trumpy construction and civil engineering projects so I suspect they will get over it remarkably quickly.

Could this possibly be another sign of common sense. Aren’t things boring when there’s nothing to moan about..... :)

Henry
 
I agree that fuel theft will increase. Even a modest power boat will hold around 200 litres (in my case petrol - somewhat more expensive than red diesel - around £275 worth).
 
henryf said:
Given the sensitive relationship between Brexit and the British fishing fleet I hardly think we were ever going to see a wholesale upheaval of marine diesel prices. The last thing fishermen need is a massive hike in their main expense. So red diesel will remain and nothing will change. .....
Henry
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I'm puzzled by that comment. I can see that nothing will change for the commercial vessels but for recreational boaters like me the red book specifically says 'Prohibition of use for propelling private pleasure craft'. To me the word 'Prohibition' seems a pretty big change given that I've got 3500 litres on board at present, enough for about 2 years' boating.
 
I am assuming marinas will need to change to white diesel well before April 2022 so as to be sure the white diesel is not tainted with red dye.
 
It would seem possible a system will be in place to claim back the extra duty on white diesel fuel used for a heater. However I don't see how that would work.
 
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Seems very unlikely to me that anywhere will go to the trouble and cost of installing a second diesel tank. So, from a practical viewpoint, red will only be available at places which are mostly commercial/fishy, and white only will be available where the bulk of boats are pleasure craft. This will of course potentially make it difficult to cruise some parts of the country. As to claiming back duty for heating, unless a live aboard the usage for this is probably nearer 4% than 40%. The 60/40 thing was only ever to try and placate Brussels, and it did mean we had red for an additional decade. It's demise was always gonna come around sooner or later.
 
AdeOlly said:
Seems very unlikely to me that anywhere will go to the trouble and cost of installing a second diesel tank. So, from a practical viewpoint, red will only be available at places which are mostly commercial/fishy, and white only will be available where the bulk of boats are pleasure craft. This will of course potentially make it difficult to cruise some parts of the country. As to claiming back duty for heating, unless a live aboard the usage for this is probably nearer 4% than 40%. The 60/40 thing was only ever to try and placate Brussels, and it did mean we had red for an additional decade. It's demise was always gonna come around sooner or later.
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I agree that most fuel outlets will have to make a choice between red and white. The cost of installing dual tankage and pumps will be large and if the current financial crisis lasts for any length of time very few businesses will want to spend money on capex which produces no incremental income but merely offers a convenience to customers. In the last 4 1/2 years our boat has visited exactly 50 different marinas, ports and harbours in the UK, Ireland and the Channel islands and it has struck me how many of them have both recreational and commercial craft. Sovereign Harbour at Eastbourne is a good example. It looks like a purely recreational marina but in a side arm is a busy fishing dock and those guys do far more hours at sea than any of the recreational boats. Perhaps what will happen is that marinas will sell white diesel and the fishing boats etc. will bring their own fuel to their berths in IBCs wherever the design of the marina permits this.

So far as 60/40 is concerned we are not live-aboards but we have both a diesel furnace and an 8kW generator, and we don't cruise a vast amount. I reckon our usage is genuinely about 60/40.
 
60:40 at my local marina is currently £1.12 per litre.

Yesterday, I filled the diesel car up, full duty paid of course, for £1.17 per litre

A change to white would be manageable, as long as marinas stop ripping us off with their fuel price.

Oh, and before anyone trots out the old line about quantities, I have just ordered 1500 litres of red diesel that, even if I add full duty to every single litre, with none of this 60:40 split, will come in at £1.10 per litre. If I can do that, so can marinas.
 
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CLB said:
60:40 at my local marina is currently £1.12 per litre.

Yesterday, I filled the diesel car up, full duty paid of course, for £1.17 per litre

A change to white would be manageable, as long as marinas stop ripping us off with their fuel price.

Oh, and before anyone trots out the old line about quantities, I have just ordered 1500 litres of red diesel that, even if I add full duty to every single litre, with none of this 60:40 split, will come in at £1.10 per litre. If I can do that, so can marinas.
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RCC is charging 91p at the moment on "red". Fuel purchased long before any price drop. Can see no reason if tax rates have remained the same ,why "white" cannot be supplied at same price .
 
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