Red Diesel Ban

Industry News 01-03-2022

From the 1st of April 2022, the regulations for using red diesel are changing. Find out how the new law change could affect you, and how you can protect your site from potential fuel theft opportunists.

The New Law for Using Red Diesel

From the 1st of April 2022, the regulations for using red diesel are changing. It is currently used to fuel any off-road vehicle, but the law is being changed so that it will only be legal to use the dyed diesel for a limited selection of purposes. You are still entitled to use red diesel if your industry lies within the following:

• The agricultural sector
• If it is powering non-commercial heating systems
• If it is used within a railway vehicle.

However, for most commercial businesses, March will be the last time that you can legally purchase and use the low-tax fuel option.

Why is the red diesel law being changed?

At Budget 2020, the government decided to make a change to the law in hopes to make people turn to using efficient energy resources or cleaner fuel alternatives, with the aim of reaching climate change goals and improving air quality. The government have decided that the difference in price per litre that businesses pay for diesel in comparison to individual car owners, is unfair considering that both make the same amount of harmful emissions.
Currently, the use of red diesel produces 14 million tons of carbon dioxide every year, which is the equivalent of driving to the moon and back 45,525 times! It is believed that stopping most businesses from using red diesel will help to ensure that users of the polluting fuels will instead improve the energy efficiency of their plant or just use less fuel.
The government also stated that investments in energy innovation are being doubled. The government want manufacturers to use this as a signal to design and sell new fuel or plant alternatives, which will in turn spike competition within the market and bring down costs.

How will it affect you?

The ban is undoubtedly going to cause a huge financial impact for businesses. Anyone who switches from red diesel to white diesel will be paying double what they are used too. According to the Civil Engineering Contractors Association (CECA), the ban is likely to cost the UK construction industry alone between £280m to £490m a year. In addition to this, sites of all types are going to be much more susceptible to fuel theft.

What should you do to prepare?

Before the 1st of April, it is encouraged that you completely run down your supplies of red diesel. You are only permitted to use the fuel after this date if it was put into the vehicle beforehand.
Businesses are being advised to save evidence that they are no longer purchasing red diesel and the government has warned that they will be performing spot checks after the ban has been enforced. Significant fines will be given out for non-compliance.
You could also be looking into alternatives fuels. HVO (Hydrotreated Vegetable Oil) is a great alternative to diesel that reduces carbon emissions by 90%. It is a sustainable fuel that uses hydrogen instead of methanol to work, producing cleaner energy. HVO can also be mixed with diesel, so you will not have to spend extra money or waste any stock by draining tanks.

Eliminating the risk of fuel theft

The red dye within the diesel makes the fuel traceable, which is a deterrent for thieves. Without this dye, any diesel that is stolen cannot be detected, meaning that people will get away with stealing as there will not be any evidence against them. Bowsers and plant are likely to get damaged by people attempting to get fuel from them, which in turn creates another financial complication.

How BauWatch can help to prevent the risk of fuel theft

Here at BauWatch, we provide effective site security solutions to help you keep an eye on your fuel. Our CCTV towers are a cost-effective, highly efficient way to stop any sort of crime from taking place. They are a massive physical deterrent, standing at 6.2 metres tall with a detection range of 330 feet, they can see everything going on at your site, which in most cases means that thieves are put off before even attempting anything. In addition to this, they have a built-in speaker which our 24/7 monitoring station can use to make direct communication with any potential criminals.
We believe in making security simple, so to give our clients a peace of mind, we have an online app called myBauWatch which shows our customers a live view of what their tower can see at any time. We offer solutions that work both on and off-grid so that we can keep your assets safe no matter what your location is or what stage you are at within your development. In addition to this, our off-grid towers are powered by solar energy and a hydrogen fuel cell, so they produce zero harmful emissions! Contact us today to find out more and keep your fuel safe.