The countdown is on - less than 1 month to go until the changes to red diesel legislation

By Mark Griffiths, Head of Business Development

It is now less than 1 month until the change in red diesel legislation. Before April businesses face several challenges. As a registered dealer in controlled oils (RDCO) we are well placed to advise on the best way forward.

The economical replacement of existing reserves with alternative fuel options is coupled with the pressure to perform the switch while maintaining 24/7 customer service. 

What do you need to do now to ensure your operation is compliant come April 2022?

Stock usage

According to the latest guidance you must not purchase red diesel or put any more into non-exempt vehicles, machines or appliances after the rules change on 1st April 2022.

Given that organisations aren’t permitted to stockpile red diesel you need to calculate your stock usage and manage down your supplies and rundown period.

Fuel uplift

When you have run down your stock you may need to uplift any remaining fuel and flush the lines to allow for cleaning and inspection of the tank. HMRC updated its guidance that stock purchased before 10th June 2021 could still be used beyond April 1st, 2022, if the asset is required for back-up power generation. You should confirm with HMRC on whether your stock can continue to be used after April 2022.

Fuel sampling and polishing

If your remaining fuel is heavily contaminated, we can arrange to uplift this and dispose of it in a safe and legal manner. If you are continuing to use existing fuel stocks, we can sample and polish this for you to ensure it is effective when you come to rely on it.

Tank inspection and clean

It is important not to contaminate new high value fuel by putting it into a contaminated tank so a tank inspection and clean would be beneficial.

An expert will clean your tanks and look out for any signs of damage or interference to your tank or pipework, ensuring repairs are carried out immediately.

Alternative usage

It is not just organisations with bulk storage tanks for back-up power generation that are affected by this change in legislation, distribution organisations storing fuel for vehicles fitted with ancillary equipment, such as retail distribution HGVs refrigeration and freezer units, and coach heating units, are impacted by the change.

The same preparation process will be required for these applications.

Ensure compliance for April 2022 and beyond

The clock is ticking to ensure you are compliant. There is still time if you act now to ensure you are ready for the switch.

We are your first-choice environmental partner to ensure compliance and the integrity of your assets from April and beyond.

You can find out more about the changes to red diesel legislation by contacting HMRC directly on:

reddieselentitlement@hmrc.gov.uk
oils.policymail@hmrc.gov.uk

Originally published on 4 November 2021. Updated on 10 March 2022.

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