THE government’s latest red diesel consultation which closed on 1 October 2020, called for views on its intended removal of the entitlement to use red diesel from April 2022 except in agriculture, rail and non-commercial heating. ‘But it has overlooked any reasons why other sectors should be allowed to continue to use red diesel,’ said Tony Brown, UKIFDA technical manager.
‘As always, we support tackling climate change and meeting the UK’s net zero targets, but the proposal to remove the entitlement to use red diesel from all but a select few sectors could have an adverse impact on business, the economy and, ultimately, the consumer, after all, new technology may not be fully operational in that time frame.’
UKIFDA believes the changes to the legislation of red diesel could impact not only consumers and fuel distribution suppliers but primary users including the construction industry, pleasure craft, refrigeration transport and users of back-up generators such as hospitals, data centres and schools.
‘Curbing the use of red diesel in such a short amount of time would impose immediate additional tax of significant value for many industries that are already operating on reduced margins due to Covid-19 restrictions,’ added Tony.
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