Major diesel changes coming ‘at the worst possible time’ as drivers call for a delay

Fuel doctor examines car filled with 'contaminated diesel'

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From April 1, rebated diesel, which is also referred to as red diesel, and rebated biofuels will no longer be authorised for use as they are currently. Drivers and organisations have called on the Government to delay the restrictions, fearing that some companies may go out of business due to the higher costs.

Construction Alliance North East, in conjunction with the Civil Engineering Contractors Association (CECA) are requesting that the Chancellor considers deferring this legislative change for at least 12 months as a matter of urgency.

Stuart Miller, CAN board member and North East regional director for CECA, warned of the impact it will have on drivers around the country.

He told “CECA recognises the need to reduce carbon emissions to meet net zero goals, but we are disappointed that genuinely lower carbon fuels have been included in this legislative change.

“We are working with HMRC and the wider industry to manage the impact of the forthcoming legislation. 

“Our engagement is now focused on how the rules will be enforced, helping industry comply and addressing increased security challenges.”

Red diesel is diesel used mainly for off-road purposes, such as to power bulldozers and cranes used in the construction industry, or to power drills for oil extraction.

It accounts for around 15 percent of all the diesel used in the UK and is responsible for the production of nearly 14 million tonnes of carbon dioxide a year.

The diesel change was announced at the 2020 Budget, with the Government saying it would remove the entitlement to use red diesel and rebated biodiesel from most sectors.

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The tax changes will ensure that most users of red diesel use fuel taxed at the standard rate for diesel from April 2022.

Both organisations stated: “The removal of the Red Diesel Rebate comes at the worst possible time for the construction industry.”

Many have predicted that if the ban goes ahead at the start of April, it would negatively impact upon the construction industry, with costs being placed onto customers and the general public.

If restrictions are delayed, and red diesel is allowed for use, it would not support the Government’s intention to reduce carbon emissions.

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