The UK Government has announced plans to introduce legislative changes through the Finance Bill 2021 to restrict the use of red diesel and rebated biofuels from April 2022 to help meet its climate change and clean air targets.
The use of red diesel will continue to be permitted for agriculture, horticulture, fish farming and forestry, including cutting verges and hedges, clearing snow and gritting roads. The full list of qualifying purposes can be found on the UK Government website here.
However, the National Association of Agricultural Contractors (NAAC) has warned farmers who use equipment for non-agricultural work, including construction, not to be caught out by the new rules.
The NAAC is also seeking clarity on how to effectively remove all traces of red diesel from tanks and filters to ensure compliance. If a vehicle is taxed for agricultural use, there shouldn’t be a need to question whether it is fuelled with red or white diesel.
Given that the price of white diesel is around double the price of red, these changes will inevitably price those farmers who undertake non-agricultural work out of such markets.