Why Is Farm Diesel Red?

On-road diesel is either clear or somewhat green in appearance. When diesel fuel is freshly dispensed into a bottle to observe its color, refineries add a green dye, which is visible. This dye fades to yellow or darker colors as the fuel ages. Checking the fuel for a “bright” appearance, with the faint green dye being a giveaway that the diesel is new and in good condition, is part of a visual inspection to assess diesel fuel quality.

What is dyed diesel?

Diesel contains dye in almost all of it. When we talk about dyed diesel, we usually mean a red dye applied to off-road diesel. Off-road diesel is typically used for heating oil, construction fueling, agricultural use, and other off-road equipment not needed to pay fuel taxes on the highway system.

What is farm diesel?

Off-road diesel, often known as farm diesel or diesel for agricultural purposes, is diesel that is not subject to on-road fuel taxes. Diesel fuel used for agricultural purposes is tax-free. Taxes can be avoided if diesel is burned on a farm and can be tracked. In Oregon, farms are able to obtain clear diesel without paying any road fees. It is frequently coloured red to indicate that it is tax-free. Some farms may track their use of clear diesel so they can submit for Federal road taxes for off-road usage in Oregon, where P.U.C. for trucks over 26,000 GVW pay a weight mile tax instead of a per gallon state road tax.

What color is dyed diesel?

Every gallon of fuel sold in the United States contains some color. Diesel for on-road use usually has a slight green hue. This is a dye that is mixed into the fuel by either the refiner or the terminal supplier. Off-road diesels are coloured red to indicate that the fuel is tax-free and intended only for off-road use.

Why is diesel dyed?

Diesel is coloured to indicate whether or not it has paid road tax. In the United States, on-road diesel usually has a faint green hue. Off-road diesel is dyed red to indicate that it has not paid the required road taxes in all states and by the federal government.

What is off-road diesel?

Off-road diesel is diesel fuel that has been dyed red to indicate that it is tax-free and only available for off-road fuel uses such as construction fueling, equipment that is never used on a public road, agricultural use, heating oil, boiler fuel, and other non-taxed diesel fuel uses as defined by state and federal fuel tax laws. Some off-road users in Oregon can use the Oregon state tax exemption to buy on-road fuel if they have the correct papers.

Is dyed or off-road diesel flammable?

The National Fire Code classifies off-road diesel as a Class II combustible liquid. A flammable fuel has a flash point below 100 degrees Fahrenheit. The flash point of diesel ranges between 126 and 205 degrees Fahrenheit (typically assumed to be about 160 degrees F). As a result, it’s classified as a Class II combustible.

Is off-road diesel or dyed diesel high sulfur diesel?

Dyed diesel (also known as off-road diesel) contains a lot of sulfur. Diesel fuel having a sulfur level of more than 500 parts per million is known as high sulfur diesel.

Is off-road diesel or dyed diesel ultra-low sulfur diesel?

Off-road and colored diesel fuels may have ultra-low sulfur, however this is not always the case. In the United States, there has been a persistent campaign to reduce sulfur in all fuels, led by EPA regulation. Off-road construction and agricultural equipment have been required by EPA rules in recent years to have an emissions system that allows ultra-low sulfur to function without serious difficulties. As a result, today’s off-road diesel is ultra-low sulfur. If you have a tank with old dyed red diesel fuel in it, you can infer it has a sulfur concentration that is higher than ultra-low.

What is dyed ULSD fuel?

Dyed ULSD fuel is ultra-low sulfur diesel that has been dyed red to indicate that it is only intended for off-road or untaxed use. Heating oil, construction fuel, agricultural fuel, generator fuel, and other off-road uses are common uses for this type of fuel. The abbreviation “ULSD” stands for ultra-low sulfur diesel.

Is dyed diesel #1 or # 2 diesel?

Diesel that has been dyed can be either #1 or #2 diesel. Both fuels must include a red dye to prove that they are untaxed and cannot be utilized as on-road fuels.

Why does the government require diesel be dyed red?

“For two reasons, the federal government demands dyeing of untaxed diesel fuel and kerosene. To aid in the reduction of tax fraud by recognizing fuel that hasn’t paid excise taxes and to aid in the reduction of air pollution by identifying fuel that isn’t acceptable for use in highway vehicles.”

Is dyed diesel and off-road diesel kerosene?

Kerosene (which crosses as #1 diesel fuel) can be found in dyed diesel and off-road diesel, but it is not always the case. Do not mistake a dyed fuel for kerosene, which is a more uncommon fuel. Kerosene differs from #1 diesel in one way: it has been proven that it may be absorbed and taken up by a wick. All kerosene is classified as #1 diesel. Kerosene isn’t found in all #1 diesel fuels. Diesels that have been colored and off-road fuels are in the same boat. All coloured kerosene and off-road diesel are dyed. Kerosene isn’t the only coloured fuel.

Is dyed diesel and off-road diesel stove oil?

Stove oil is coloured diesel and off-road diesel. Similar to diesel, it’s usually a #1 or #2 stove oil. Stove oils, as opposed to diesel, had a slightly distinct set of specification problems in the past, which is why they were named “stove oils.” It was less precise when petroleum refineries distilled crude oils to make diesel range fuels than it is now with hydrocracking technology. The number of distillate range fuel requirements is significantly more concentrated today, thanks to both oil refinery technologies and EPA emission standards, in order to assure compliance with EPA and state rules. If your heating appliance requires stove oil, it will most likely require #1 stove oil or #1 kerosene. This product is supposed to produce less soot, making it better suited for use in a pot stove. Monitor and Toyostove thermostatically controlled direct vent heaters are the most current stove oil appliances in the United States.

Is off-road diesel bad for my truck?

It depends on the year of your truck, and we’re assuming you’re talking about red diesel fuel. To begin, it is illegal to use dyed diesel, off-road diesel, or heating oil in an on-road vehicle. If you are found in Oregon, you might face a punishment of up to $10,000, and the state is very aggressive in pursuing tax evasion. Beyond the usage of off-road fuel, which is legal. On the west coast, coloured diesel is often ultra low sulfur fuel. This means that if it’s burned in your engine, it won’t cause any problems. It may be high sulfur or low sulfur fuel, depending on the age of the colored fuel or whether it is genuinely a heating oil. If you use that fuel in a post-2007 engine with a particle trap, you’ll have major maintenance problems.

Is dyed diesel or off-road diesel heating oil?

Yes, colored diesel and off-road fuel can be used to heat your home. These days, most dyed diesel and off-road diesel is ultra-low sulfur diesel. According to the EPA and most state rules, heating oil can have a low or high sulfur concentration. So, while heating oil cannot always be colored diesel (when used for off-road machinery or agricultural purposes), dyed/off-road diesel can always be used for heating oil and meet the requirements of heating oil furnaces.

Does off-road diesel freeze?

At low temperatures, off-road diesel gels. Wax crystals form and fall out of the diesel at lower temperatures, clogging filters and gelling the fuel. Water and naturally held-in diesel will also ice up, clogging filters. Diesel gelling is the term for this phenomena.

Does off-road diesel gel in cold weather?

If it gets cold enough, all diesel fuels will gel. Wax crystals and ice accumulating in your fuel will clog filters and cause your equipment to shut down. As a rule of thumb, if you don’t treat your diesel fuel, it should work OK above 20 degrees F. If the temperature drops below 20 degrees Fahrenheit, make sure your vendor treats the fuel for winter use so it can operate at -20 degrees Fahrenheit. If you’re going to be operating in temps below that, check with your vendor to see if they’ve tested the fuel to work in temperatures below -20 degrees F.

Does off-road diesel go bad?

Off-road and dyed diesel might deteriorate with time. All ASTM-compliant diesel fuels should be safe to store for up to a year without extra treatment or testing. If you’re storing diesel for a long time, it’s a good idea to treat it with a biocide and an oxidative stabilizer to guarantee that it stays within specifications and that nothing grows in your fuel tank. Water and dirt entering the fuel through a tank vent is the worst opponent of long-term diesel storage. A tank will breathe when the temperature changes, bringing in air and moisture from the outside. Keeping your gasoline within specification means making sure there’s no water in the tank and that no outside impurities can get in.

How long can I store off-road or dyed diesel in a fuel tank?

Diesel fuel has a one-year shelf life if left untreated. You can anticipate diesel to last two to three years if it is treated with a biocide to prevent biological development in the tank. When diesel is sampled after two to three years, it loses its brightness and begins to exhibit signs of age. After three years, you’ll want to sample and test the fuel to make sure it’s up to code and safe to use.

What is the difference between off-road diesel and on-road diesel?

The significant difference between the two fuels is the amount of gasoline taxes levied. To indicate that it is both ultra-low sulfur diesel and that the on-road fuel taxes associated with using it to power a highway vehicle have been paid, all on-road diesel is transparent or greenish in color. Fuel that has been dyed has not been taxed and cannot be used to power a vehicle on a public road.

Do you pay sales tax on dyed diesel or off-road diesel in Washington state?

Yes. The sales tax is assessed if you consume colored diesel and do not pay the on-road fuel taxes in Washington state. The sales tax is not paid if you use clear fuel with road taxes connected to it. The Washington Department of Revenue has more information about Washington gasoline taxes.

What are the taxes on dyed diesel or off-road diesel in Oregon state?

Your gasoline distributor pays a modest tax (less than $.01) on the fuel they purchase at the wholesale terminal. The US EPA Superfund cleanup and the “LUST” (Leaking Underground Storage Tank Cleanup Fund) are two of the taxes. Aside from that, there are no taxes on off-road diesel fuel in Oregon (federal, state, or local municipality).

Is there a way to buy clear diesel without a road tax on it?

In Oregon, you can purchase clear fuel that is exempt from state road charges. The following are the requirements for using clear diesel in Oregon without paying state taxes:

  • cars with a legal Oregon “E” plate and registered to a US government agency, an Oregon state agency, or an Oregon county or city
  • Vehicles or farm tractors/equipment that are only used on the roadway inadvertently, as specified in ORS 319.520
  • Unlicensed vehicles or equipment that are utilized exclusively on privately owned property

What happens if I use dyed diesel in an on-road vehicle?

If you are caught in Oregon, you might be fined $10,000 each day. We’ve seen fuel tax evaders nabbed before, so be advised that Oregon is looking for any amount of dye in an on-road vehicle’s saddle tank. You will have maintenance concerns with your vehicle’s emission system if you use low sulfur or high sulfur fuel and your vehicle has a particulate trap.

Can you use dyed diesel in a diesel pickup truck?

Only if the pickup is solely for off-roading. If you plan to utilize that truck on a public road (even to cross a street) and colored fuel is discovered in it, state regulators can (and do) levy fines of up to $10,000 per occurrence. You can use off-road diesel as the vehicle’s fuel if you have a closed facility or a large farm and are not registering the vehicle for on-road use (thus the pickup must not leave the site). Any regulator observing dyed fuel in your vehicle will assume it’s an on-road pickup if you have license plates and it’s approved for on-road use.

How does the government test if someone used dyed diesel?

Typically, regulators may take a sample from the tank or spin the gasoline filter to look for obvious dyed fuel when checking for illegal usage of dyed fuel. If the fuel is clear (or even slightly pink) and they suspect dyed fuel was used in the car, they can use a special black light to show that dyed fuel was in touch with the vehicle. They’ll beam the light on the gasoline filter, the fuel tanks, and other portions of the engine compartment that may have come into contact with the fuel. They will cite the vehicle operator if they detect even a minor trace of the red-dye used in off-road fuel in specific regions. On the internet, there are kits for filtering dye out of gasoline to eliminate the color. Those kits won’t be able to remove enough dye to keep these lights from detecting it.

Why is off road diesel illegal for pick up trucks to use?

Off-road diesel is painted red to indicate that on-road fuel taxes have not been paid or that the fuel is tax-free. Fuel taxes for on-road fuel usage are levied by the federal government and state governments to help pay for the roads we all use. Fuel taxes are deductible if you use diesel for non-road equipment, machinery, or heating/boiler uses, and the fuel is coloured to make its tax-free status obvious. In a roadside or site level inspection, regulators can also shine a black light on certain parts of a vehicle’s system to see if colored gasoline is being used illegally.

What is the difference between dyed diesel and heating oil?

What’s going on in the Pacific Northwest right now? Typically, nothing. Diesel-colored heating oil is used. To reduce the overall cost of the fuel, most petroleum distributors sell the mainstream colored diesel grade for use as heating oil. Heating oil and dyed diesel have varied ASTM requirements depending on where you acquire it. Because furnaces and boilers can manage dirtier, lower-quality fuels than off-road equipment with a particle trap, heating oil specifications have larger tolerances than diesel criteria. Although heating oil is always a diesel fuel, dyed diesel for off-road machinery may have a distinct specification. In Oregon, for example, any dyed diesel fuel used in off-road equipment must include at least 5% biodiesel or renewable diesel. Heating oil and boilers are excluded from the biofuel mandate. Heating oil, on the other hand, can be free of biodiesel, while off-road diesel for machinery cannot.

Can refrigerated trailers or “reefers” use dyed diesel even if they are attached to a truck moving it on the highway?

Refrigerated trailers are, in fact, off-road vehicles. Because its engine is not pushing something along the road, the diesel-fueled refrigeration trailer is considered off-road equipment. Any ultra-low sulfur diesel fuel can be used in these trailers (dyed or clear). If you use on-road clear fuel in a refrigerated trailer and keep track and verification of the on-road fuel used in the off-road piece of equipment, you can get your fuel taxes returned. However, proof is required, so speak with your CPA or accountant.

Why is red diesel illegal?

Why is it unlawful to use red diesel? Because it is not taxed, red diesel is prohibited to use in on-road cars. The use of it in on-road engines is regulated by the federal and state governments. On-road vehicles cannot be supplied with this sort of fuel by distributors or merchants.

Why is my diesel fuel red?

If you’re new to buying diesel fuel or haven’t done it in a while, you may notice that your purchases are a little more colorful than they used to be.

That’s because the US government now mandates that diesel be sold in one of three colors: clear, red, or blue dyed. If you’re going to buy diesel fuel, it’s important to know the tax and legal distinctions between these three types.

  • Clear diesel – Clear diesel is an on-road vehicle-grade fuel sold at petrol stations across the United States. This type of fuel is intended for vehicles that travel the roads on a daily basis – cars, trucks, SUVs, and so on – as well as maritime vehicles. Clear diesel has a low sulfur level and is taxed in the United States. This fuel must be used in any diesel-powered vehicle that is licensed for on-road use.
  • Most colored diesel sold in the United States is red in color, and it is dyed with the chemical ingredient Solvent Red 26 or 164. Only off-road vehicles and applications, such as farm tractors, heavy construction equipment, and generators, are permitted to utilize red-dyed gas. The sulfur level of red-dyed diesel is higher than that of clear diesel. This gasoline is not taxed in the United States because it is not intended for use in on-road vehicles.
  • Blue-dyed diesel is identical to red-dyed diesel, with the exception that it is solely used in US government vehicles.

Dyed diesel regulations

Because colored diesel is not taxed and contains more sulfur, it is strictly regulated by federal and state legislation; penalties for unauthorized use of dyed fuel range from steep fines to lengthy prison sentences. Distributors cannot intentionally transport colored fuel with the intention of supplying on-road cars, and gasoline retailers cannot knowingly sell dyed diesel for use in on-road vehicles.

You cannot intentionally use colored diesel in an on-road vehicle if you are a retail diesel customer; if dye is found in an on-road vehicle, the consequences can be severe. Be astute!

Can farmers use red diesel on the road?

The use of red diesel is frequently referred to as a grey area in farming circles, but the laws are actually quite clear, and the Memorandum of Agreement in HMRC’s Notice 75 on the Gov.uk website makes it extremely difficult to say otherwise.

Agriculture contributes for roughly 7% of total rebated fuel consumption in the UK, with major tax benefits for the agricultural business, and it is critical that the industry follows the guidelines scrupulously to help ensure future use of the fuel.

A general guideline is that any usage of red diesel on the road must be part of an agricultural, horticultural, or forestry enterprise, and it cannot just be for haulage.

Also, if you use the vehicle on public roads for both agricultural and non-agricultural purposes, it no longer qualifies as an agricultural vehicle “excepted vehicle” that must always be fueled with white fuel.

To assist explain many of the common grey areas, the following questions will focus on where utilizing red diesel for farming activities is authorized.

These questions should be read in combination with HMRC Notice 75, which explains what qualifies as a deduction “What qualifies as “agricultural use” and what sorts of agricultural vehicles do.

How far can I travel using red diesel?

The use of red diesel in agricultural vehicles engaged in agricultural work has no distance restrictions. If you’re transporting product, you’ll need to figure out if you’ll require an operator’s license if you’re going more than 15 miles from your base.

I am a contractor, travelling to farms to carry out cultivations work, including ploughing, harrowing and drilling. Can I travel to and from the farms on red?

Contractors are permitted to use red diesel if they are traveling to or from farms to perform agricultural work, or if they are transporting materials or equipment for such operation.

The Council has invited me to tender to cut roadside verges and hedges using a tractor. Do I need to include an extra charge for using white diesel?

No, as long as you don’t use your car for any non-agricultural use on the road. Agricultural tractors can use rebated fuel to cut hedges, trees, and verges that border public highways, according to the law.

How far can I travel if I’m using red diesel to haul straw that I buy in swath and bale before taking it off the field over the few weeks after harvest?

The usage of red diesel has no distance restrictions. However, if you are participating in the agricultural operation that created the straw, such as baling, you can only use rebated fuel.

How do I prove that I have been an “integral part of the agricultural operation”?

Maintaining accurate records is essential because it is the only method to establish that you were participating in an agricultural project. A trail of contracts, job sheets, invoices, and receipts is required. This is critical, especially for contractors, in order to prove that all work done in red is valid.

I have new tenants in a farm cottage and need to move some furniture with my tractor and trailer?

This is not a proper application of red diesel. It is not an agricultural operation, which is defined as the planting, harvesting, or rearing of crops or animals for food, wool, leather, fur, or other purposes.

I use my tractor for farm work, but also haul materials for a local building firm and move soils from construction sites. How do I stay within the law? Can I use dual tanks, or perhaps just pay the extra tax when I should be using white diesel?

Only a tractor used primarily for agricultural purposes is permitted to utilize red diesel. This means that if you work in non-agricultural jobs as well as agricultural jobs, you must utilize white fuel for all of your labor, whether agricultural or not.

A tractor that is taxed as an agricultural vehicle must also be utilized exclusively for agricultural purposes. So you can’t be agriculturally taxed if it isn’t agricultural without breaching the law and risking prosecution.

It’s also dangerous to switch fuels because it’s impossible to get all traces of red out of the tank, especially now that hidden markers are being employed to identify gasoline. If your gasoline is tested on a non-agricultural operation, your tractor will most likely be seized if any fuel indicators are found.

If all non-agricultural labor is done off-road, one option is to transport the tractor on a low loader. Red diesel can be used off-road regardless of the activity for fuel duty purposes as long as you exclusively utilize the road for agricultural activities.

Dual tanks are prohibited and not an option, therefore the short answer is that if you use public highways for both agricultural and non-agricultural activities, you cannot have an agricultural tractor. It must either be re-taxed and painted white to be utilized on public highways purely for agricultural purposes.

If I am caught out using the wrong fuel, how far can HMRC trace my business back?

HMRC has the authority to assess extra duty for a period of four years. It might get very expensive if it is discovered that you were utilizing tractors on red for non-agricultural operations during that time.

I am running a classic tractor charity rally around local country roads. I have been told it isn’t appropriate to use red diesel for this?

This isn’t an agricultural enterprise, to be sure. The tractors must run on white fuel because it is a recreational activity.

I have diversified and have a livery stables within the farmyard. Can I use red diesel to move manure in and out of the yard for my equine clients?

No, maintaining animals for the sake of sport or leisure is not considered agricultural.

My farm contracting business has grown considerably due to our local AD plant. I have two self-propelled forage harvesters and am involved in contracting services planting and harvesting the maize feedstock and taking it into the AD plant. I sometimes harvest and move the maize to a farm field-side clamp, then move it into the plant when it is required. Can I used red diesel?

Yes, because your services are an important component of the farming operation. If you were merely hired to transport maize to the AD factory and weren’t personally involved in cultivating or harvesting the maize, you’d have to use white diesel because you’d be hauling it.

I have been asked by my local sports club if I can use my tractor to keep the sports pitches maintained, fertilised and mowed. Can I used red diesel to travel to the playing fields?

No. Because HMRC does not consider sports pitch maintenance to be horticultural, it must be fuelled with white diesel if it travels on the roadways for this purpose. Off-road work can be done on red if the tractor is mounted on a low loader.

A self-propelled mower, on the other hand, can be run on red at all times.

I need to use my tractor for drainage work and clearing ditches which run across my farmland.

Red diesel can be utilized as long as the job is done for the benefit of agricultural land.

I have also been asked to do additional ditch clearing for a neighbouring housing estate to prevent flooding. Can I use red?

No. Because red diesel cannot be used for flood protection, any extra flood protection/non-agricultural drainage work would necessitate switching the tractor to white diesel (assuming the work does not require the use of public roadways).

I want to tow a van behind my tractor/trailer to the field to get staff back to base to avoid unnecessary journeys to and from the field with big heavy slow machinery. Can it be towed using red diesel?

No, utilizing red diesel in a non-agricultural vehicle (van, automobile, caravan) is not permitted because it is not intended for agricultural usage.

I am employed by a farmer to move sugar beet from a field clamp to a factory. Can I use a tractor licensed as an agricultural machine and running on red diesel on the public road?

Unless you were actively involved in producing or harvesting the sugar beet, this is a haulage operation.

I need to fetch some roof sheets to fix my farm store and need to collect them from the local agricultural country store. Can I take my tractor and trailer on red?

Yes, because you are permitted to transport supplies and equipment for the repair and maintenance of your own farm structures using red diesel (but not the farmhouse).

I was stopped by an “HMRC officer” but I am not sure it was legitimate. How can I be sure?

To begin with, HMRC is unlikely to flag down and halt your vehicle. It’s more likely that it’ll be tested for gasoline as part of a larger vehicle inspection by the police or Vosa.

HMRC officers would generally be in uniform and driving identifiable vehicles and would be able to show you a form of identity.

Why is red diesel used?

Red diesel is a type of off-road vehicle and machinery fuel. It is widely employed in a variety of industries, the most important of which are building and agriculture. Red diesel is the same as regular diesel, but it has a red dye added to it to prevent it from being used in cars that go on the road.

Does red diesel smoke more?

Is red diesel more smoke-producing than ordinary diesel? If your red diesel is of comparable quality to white diesel, it should emit no more smoke than ordinary diesel.

What is the penalty for red diesel?

If you’re detected using red fuel illegally, the authorities may take your vehicle, and you’ll have to pay a charge to have it released, as well as the amount owed in duty. Serious offenses could result in an infinite fine and a two-year prison sentence for the operator.

What’s in red diesel?

Red diesel is regular mineral diesel that has been dyed red to indicate a lower duty rate. The colour and the chemical indicators it contains have no effect on the fuel’s usage or function.

Because red diesel is a rebated fuel, it is taxed at a lower rate than regular white diesel found at gas stations around the country.

The use of red diesel in automobiles on public highways is prohibited (although there are some exceptions such as when gritting roads). Most off-road vehicles, machinery, and commercial heating systems can run on gas oil.

Why is red diesel not taxed?

Normally, dyed diesel fuel is not taxed because it is sold to farmers for farming purposes, for home heating, and to municipal governments, all of which are free from excise tax.

Is red diesel getting phased out?

Fuel duty applies to both motor and heating fuels, with only fuel taxed at the full amount of duty authorized to be used in road vehicles. Because fuel duty was originally meant to be a levy on road vehicles, some oils and fuels are charged at a lower (rebated) rate. This includes gas oil (diesel), which is chemically marked and coloured to allow law enforcement agencies to recognize it as rebated fuel and detect when the incorrect type of diesel is being used, deterring fuel fraud. This fuel is known as’red diesel’ because of the color of the dye. The fuel duty rate for gas oil intended for use in diesel engine road vehicles, also known as ‘white diesel’ (due to the lack of marking or colour), is 57.95 pence per litre (ppl). Red diesel is eligible for a 46.81ppl rebate, resulting in an effective duty rate of 11.14ppl.

With the exception of agriculture (as well as horticulture, forestry, and fish farming), rail, and non-commercial heating, the government declared in Budget 2020 that it will remove entitlement to use red diesel from most sectors on April 1, 2022.

Last summer, the government held a consultation to ensure that it had not forgotten any compelling reasons why other industries should be allowed to use red diesel beyond April 2022. The summary of replies to the consultation, which was published alongside Budget 2021, summarizes the results of the consultation.

The government announced in Budget 2021 that it will not change the treatment of private pleasure craft in the United Kingdom, where they will be able to use red diesel and pay their fuel supplier the difference between the red diesel and white diesel rates on the proportion they intend to use for propulsion. The government’s response to the summer 2020 consultation also stated that private pleasure vessels in Northern Ireland will be required to use white diesel as of June this year. This would guarantee that the UK complies with its international duties under the terms of the Northern Ireland Protocol to the Withdrawal Agreement, as determined by the Court of Justice of the European Union in 2019. It will also be in line with private pleasure vessel fuel use in the Republic of Ireland, making it easier for private pleasure craft users to get the fuel they need if they sail between Northern Ireland and the Republic of Ireland (and vice versa).

Along with this move, the government will implement a new relief program under which private pleasure craft users in Northern Ireland will be able to claim a relief for the percentage of their fuel that will be used for non-propulsion, avoiding paying a higher rate of tax than they do now. Changes to the taxation of diesel used in private pleasure craft in Northern Ireland will be enacted separately, and a Tax Information and Impact Note (TIIN) will be published alongside secondary legislation for that measure.

Is red diesel being abolished?

From April 1, 2020, the government declared that red diesel and rebated biodiesel would be banned in most sectors. The tax reforms are being implemented to aid in the achievement of climate change and air quality goals.