Future Ready Fuel - The Current Situation


In the recent budget (March 2021), the Chancellor of the Exchequer confirmed impending changes to tax relief for ‘off-road’ or ‘red’ diesel. These changes will result in the removal of tax relief for some sectors and applications. Current duties will remain until 31st March 2022 and this new taxation legislation will be introduced from 1st April 2022.

This change does not apply to all sectors however, there are some exemptions, including agriculture, non-commercial heating, rail and commercial boat operators.

Please contact us for a full list of exempt applications and sectors.

Applications such as construction, logistics and manufacturing will no longer be eligible for rebates on their red diesel consumption. Again, please contact us for a full list of applications and sectors who will be impacted by this change.

From 1st April 2022, we and other UK fuel distributors will not be able to supply red diesel for non-exempt applications. Businesses affected by the changes should not purchase red diesel for use beyond 1st April 2022 and must run-down existing stock. We offer a range of alternative fuel options and can help with storage and tank flushing arrangements through TG Industrial Services, part of the Johnston Fuels Group.

Customers should also be aware that other fuels that are currently subject to duty rebates for certain applications, such as kerosene and fuel oil, are also currently under Government review. Any further changes will be communicated as and when confirmed.

Our Trade Association, UKIFDA, continues to discuss these changes with government and we will keep you updated with changes and alternative fuel options as things become clearer. We will continue to support our customers and keep you informed through these legislative changes and their impacts on your business.