What is red diesel (gas oil)?
Red diesel (gas oil), a fuel subject to lower duty rates, is more affordable than standard white diesel available at regular petrol stations. Its use is strictly regulated, with unauthorized usage resulting in fines and equipment seizure.
Primarily employed by industries like farming, agriculture, emergency power in state institutions, and fish farming, Gas Oil stands out not only by name but also due to its distinct red colour. The hue is not a performance enhancer but serves as a marker, aiding HMRC inspectors in identifying it easily during fuel tank inspections for potential illegal use.
Where can I buy red diesel?
While you may encounter vendors offering Gas Oil at lower prices, caution is advised due to potential concerns about fuel quality and legality. Purchasing from unreliable sources may lead to problems with HMRC and, in the case of low-quality fuels, increased repair costs.
Our sister companies Oilfast & OilMaxx, with a long-standing history in red diesel (gas oil) supply, ensure the provision of only top-tier fuels. Operating through an extensive network of strategically located depots, they are committed to delivering your fuel promptly at a competitive price.
FAQs
Alternative Names: Red diesel is also known as gas oil, cherry red, agricultural diesel, cherry juice, 35-second oil, medium diesel, tractor diesel, and marine diesel. Regardless of the nomenclature, all names refer to the same fuel and are subject to the same usage laws.
Dye Removal: Although technically possible, removing the red dye from Gas Oil is highly illegal and categorised as fuel laundering. Any involvement in fuel laundering activities can result in hefty fines and potential imprisonment.
Legality: Using Gas Oil is legal as long as it adheres to HMRC guidelines. Specific industries, such as agriculture and horticulture, can utilise Gas Oil for off-road vehicles and machinery. Use on public roads for general purposes is considered tax evasion and subject to fines and prosecution.
Usage: Gas Oil finds applications in traveling fairs, circuses, non-commercial building heating and power generation, agriculture, horticulture, fish farming, forestry, rail transport (rail-specific vehicles), community amateur sports clubs, golf courses, and sailing, boating, and marine transport (excluding private pleasure craft in Northern Ireland).
Price Difference: The lower cost of Gas Oil compared to white diesel results from different taxation and fuel duty structures. Red diesel is heavily rebated to support essential industries, limiting its road use to specific activities such as gritting public roads.
On-Road Use: Limited circumstances allow Gas OIl use on public roads, such as landowners traveling up to 1.5 km between different sections of their land. Gritters assisting in road maintenance during winter can also use red diesel.
Fines for Illegal Use: While there is no fixed fine for illegal red diesel use, HMRC may charge for system restoration, Gas Oil removal, and potential differences in cost compared to white diesel.
License Requirement: No license is needed to purchase red diesel, but buyers must sign an RDCO form, declaring compliance with the Hydrocarbon Oil Duties Act 1979. Sellers must be registered with HMRC.
Vehicle Types: Gas Oil is permissible for vehicles in specific industries not using public roads, including agriculture, rail transport, community sports clubs, golf courses, and marine transport.
Public Roads and Tractors: Tractors can use red diesel (gas oil) on public roads for agricultural purposes, with a 1.5 km limit. Gritting roads with red diesel is legal. Mixing red and white diesel in separate tanks is illegal.
Storage Regulations: Red diesel storage requires structurally sound tanks, regular maintenance, impermeable bund base and walls, and adherence to safety zones to prevent environmental pollution.
Boilers and Generators: Gas Oil can be used in backup generators for heating and power in non-commercial premises. However, industries lost access to red diesel for heating from April 1, 2022, encouraging the adoption of greener fuels.
VAT Rate: Different tax rates apply to red diesel (gas oil)based on quantity, with a 5% rate for up to 2300 liters and a 20% rate for higher quantities.
Tax Reclamation: To reclaim tax on red diesel, users must inform suppliers about the intended use (propulsion or heating) and gain HMRC approval through the submission of form HO27.
Fuel Prices: Gas Oil prices fluctuate based on geopolitical factors, fuel stocks, and crude oil production rates. For current prices, contact suppliers directly.
Fuel Disposal: Unwanted or degraded Gas Oil can be uplifted and recycled professionally.
Yacht Use: Gas Oil can be used in yachts for propulsion and on-board power, but the full fuel duty must be paid for propulsion. Yacht owners must declare the percentage of fuel used for propulsion to suppliers.
Crossing UK Waters: UK laws regarding Gas Oil use on pleasure crafts apply within UK waters. Beyond UK waters, the laws of the respective sovereign nation prevail.
If you would like to talk to one of our fuel experts, please complete our contact form or call on 01367 704 910.