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Chancellor's Spring Statement - Red Diesel


Señor Chris

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5 minutes ago, Alan de Enfield said:

I'm struggling to think of many non-agricultural 'urban' users of red-diesel.

Boater would come to mind, but the biggest user must be the construction industry (Diggers, Dozers, power plants, generators, compressors, etc)

I think mobile cranes are allowed to run on red, they use to be. Also they use to pay a very small road fund licence.

 

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4 minutes ago, ditchcrawler said:

I think mobile cranes are allowed to run on red, they use to be. Also they use to pay a very small road fund licence.

 

8.1 What vehicles can use red diesel?

Certain categories of vehicle are excluded from the definition of road vehicles, and can therefore use red diesel. The different categories of excepted vehicle are explained in the following paragraphs. However, operators should keep abreast of changes to the rules because it is their responsibility to make sure that their vehicles use the appropriate fuel. HMRC therefore recommends that they make regular checks on the HMRC website which publishes details of alterations to the rules and updates to this notice.

8.2 Unlicensed vehicles not used on public roads

A vehicle that is not used on the public road and has no licence under the Vehicle Excise and Registration Act 1994 is an excepted vehicle. If a vehicle has become untaxed since 31 January 1998 it requires a SORN. Such vehicles will be eligible to use red diesel if a SORN declaration has been made. Unlicensed vehicles that do not require a SORN(including unregistered vehicles that have never used the public road) will continue to be able to use red diesel without a SORN declaration if kept off-road.

Under DVLA rules, a vehicle with a SORN declaration in place may only use the public road to travel to and from a licensed station for a pre-arranged MOT, vehicle identity check, or weight or emissions test.

Unregistered or unlicensed vehicles are not permitted to run on public roads unless they are travelling to and from a pre-arranged mandatory Department for Transport (DfT) test or re-test. HMRC will take action if such a vehicle is found on public roads using red diesel at any other time. Other offences beyond the scope of HMRCresponsibility may also be committed if such a vehicle runs on public roads, even if road fuel (‘white diesel’) is being used.

8.3 Tractors

To qualify as an excepted vehicle, the tractor must be an agricultural tractor designed and constructed primarily for use otherwise than on roads. It must not be used on public roads except for:

(a) purposes relating to agriculture, horticulture or forestry

(b) cutting verges bordering public roads

(c) cutting hedges or trees bordering public roads or bordering verges which border public roads

(d) from 01 November 2013, gritting of roads, including travel to and from where gritting takes place, and for the collection of equipment and material for gritting

See paragraph 8.21 for what we mean by activities falling within agriculture, horticulture or forestry.

8.4 Light agricultural vehicles

To qualify under this category the vehicle must:

(a) have a revenue weight not exceeding 1,000 kilograms

(b) be designed and constructed so as to seat only the driver

(c) be designed and constructed primarily for use otherwise than on roads, and

(d) be used only for purposes relating to agriculture, horticulture forestry or for gritting roads

The revenue weight of a vehicle is either the maximum weight of the vehicle or the design weight as defined in section 60A of the Vehicle Excise and Registration Act 1994.

Quad bikes and similar single-seater machines used for agricultural, horticultural or forestry work fit into this category.

8.5 Agricultural material handlers

To qualify as an agricultural material handler, the vehicle must be designed to lift goods or burden and be designed and constructed primarily for use otherwise than on roads.

Agricultural material handlers must not be used on public roads except for:

(a) agricultural, horticultural or forestry work

(b) cutting verges bordering public roads

(c) cutting hedges or trees bordering public roads or bordering verges which border public roads, or

(d) since 1 November 2013, the gritting of roads, including travel to and from where gritting takes place and for the collection of equipment and material for gritting

8.6 Agricultural engines

This category is restricted to purpose-built vehicles that:

(a) are designed and used solely for purposes relating to agriculture, horticulture or forestry

(b) are used on public roads only for proceeding to and from the place where the vehicle is to be or has been used for those purposes, and

(c) when so proceeding do not carry any load except such as is necessary for its propulsion or for the operation of any machinery built-in or permanently attached to the vehicle

This category includes but is not limited to combine harvesters, crop sprayers, forage harvesters and pea viners.

8.7 Agricultural processing vehicles

These are specialist agricultural vehicles that:

(a) are used for the conveyance of built-in machinery for processing agricultural, horticultural or forestry produce that is used while the vehicle is stationary

(b) are used on public roads only for proceeding to and from the place where that machinery is to be used, and

(c) when so proceeding do not carry any load except such as is necessary for their propulsion or for the operation of the processing machinery

This category includes mobile seed cleaning machines or feed milling machines.

8.8 Vehicles used between different parts of the land

A vehicle in this category must:

(a) be used only for purposes relating to agriculture, horticulture or forestry

(b) be used on public roads only in passing between different areas of land occupied by the same person

(c) not travel a distance on public roads in passing between two such areas that exceeds 1.5 kilometres, and

(d) have a nil licence (as defined in Section 62 of the Vehicle Excise and Registration Act 1994) in force

8.9 Mowing machines

The mowing machine must be a complete vehicle, whether pedestrian-operated or ‘ride-on’. The machinery must be built into the vehicle for it to qualify under this category.

8.10 Snow clearing vehicles

A vehicle is an ‘excepted vehicle’ when it is being used to clear snow from public roads by means of a snow plough or similar device (whether or not forming part of the vehicle) or when it is travelling to or from the place where it is to be or has been used for that purpose.

8.11 Gritters

A vehicle in this category must be constructed or adapted, and used, solely for the conveyance of machinery for spreading material on roads to deal with frost, ice or snow (with or without articles or material used for the purposes of the machinery).

Many of these vehicles are converted HGVs that are used as gritters in the winter months. If the gritting equipment is fitted in a workshop and is attached for the duration of the winter, the vehicle is deemed to meet the requirements of the law as being used ‘solely’ for gritting.

The following do not qualify in this category:

  • vehicles towing gritting equipment mounted on trailers
  • vehicles into which gritting equipment is merely dropped or held in place with straps
  • drop-sided vehicles carrying grit or other suitable material for manual spreading

Some agricultural vehicles may use red diesel when gritting roads. See paragraphs 8.3, 8.4 and 8.5.

8.12 Mobile cranes

A vehicle in this category must be designed and constructed as a mobile crane which:

(a) is used on public roads only as a crane in connection with work carried out at a site in the immediate vicinity of where it is being used or for the purpose of proceeding to and from the place where it is to be used,

(b) when so proceeding does not carry any load except such as is necessary for its propulsion or the operation of built-in lifting apparatus, and

(c) has a revenue weight exceeding 3,500 kilograms.

The category does not include load carrying vehicles such as vans with access platforms.

Where a mobile crane is dependent on another vehicle only for transport to and from the place where it will be used, whether carried or trailer-mounted, the crane itself may use red diesel, but the carrier or towing vehicle has no red diesel entitlement.

8.13 Mobile pumping vehicles

A vehicle in this category is one which:

(a) is constructed or adapted for use and used for the conveyance of a pump and jib

(b) is used on public roads only when the vehicle is stationary and the pump is being used to pump material from a point in the immediate vicinity to another such point or when proceeding to or from a place where the pump is to be or has been used, and

(c) when so proceeding does not carry the material that is to be or has been pumped or any other load except such as is necessary for the propulsion or equipment of the vehicle or for the operation of the pump

The pump and jib must be built in as part of the vehicle. The material pumped must be delivered to a desired height or depth through piping that is attached to the pump and jib and is raised or lowered to that height or depth by operation of the jib.

Vehicles without boom-mounted pumps such as mobile batching plants are not in this category nor are load carrying vehicles fitted with boom-mounted pumps, such as gully-suckers.

8.14 Digging machines

To qualify in this category the vehicle must be designed, constructed and used for the purpose of trench digging or any kind of excavating or shovelling work. It must only use the public road for that purpose or for the purpose of proceeding to and from the place where the vehicle is to be or has been used for that purpose. When so proceeding it must not carry any load except such as is necessary for its propulsion or equipment.

Digging machines may include earth scraping machines, mobile drilling rigs and road planing or abrading machines used to remove the road surface. A tractor mounting a permanently-attached front shovel may also be classed as a digging machine. Shot–blasting vehicles used to remove paint or other material from the surfaces of bridges, girders and the like do not qualify.

Where digging machines or drilling rigs are transported on another vehicle, the combination of digging equipment and transport would qualify in the digging machine category only where the transporting vehicle was designed and constructed solely to accommodate and facilitate the operation of the specific digging or drilling unit.

To meet this requirement, the transporting vehicle must have purpose-built provision for loading and unloading the specific unit, have any necessary ancillary equipment permanently fitted, have no additional load carrying capacity, and must necessarily remain connected to the unit while it is in use. Vehicles adapted for the purpose of transporting a digging machine or drilling unit do not qualify.

Where a digging machine or drilling unit is dependent on another vehicle only for transport to and from the place where it will be used, whether carried or trailer-mounted, the digging equipment itself may use red diesel, but the carrier or towing vehicle has no red diesel entitlement.

8.15 Works trucks

To qualify as a works truck the vehicle must be a goods vehicle designed for use in private premises. It must only be used on public roads:

(a) for carrying goods between private premises and a vehicle on a road within one kilometre of those premises

(b) in passing from one part of private premises to another

(c) in passing between private premises and other private premises in a case where the premises are within one kilometre of each other, or

(d) in connection with road works at the site of the works or within one kilometre of the site of the works

In the context of this category a goods vehicle is a vehicle constructed or adapted for use and used for the conveyance of goods or burden of any description (whether in the course of trade or not).

Typical works trucks include fork lift trucks, ‘shunt’ vehicles designed to haul articulated trailers and their goods around sites and special vehicles which lift and move freight containers around sites. Typically, the vehicle will have a maximum speed well below road traffic speeds of 30 mph+ and will lack many of the features, such as braking and lighting systems, required under the Road Traffic Act 1988.

A tractor towing a trailer is not a works truck.

8.16 Road rollers

Self-propelled vehicles with one, two or three drums and walk-behind rollers qualify in this category.

8.17 Road surfacing vehicles

A vehicle in this category is one which:

(a) is designed and constructed to perform an operation necessary to construct or restore the surface of a road

(b) does not carry any load on a public road except as is necessary for its propulsion or for the operation of any machinery built-in or permanently attached to the vehicle, and

(c) has a maximum speed not exceeding 20 kilometres per hour

Vehicles such as asphalt pavers qualify in this category.

8.18 Tar sprayer

To qualify in this category, the tar sprayer must be constructed or permanently adapted, and used solely for spraying tar on to the road or for proceeding to and from the place where it is to be or has been used for that purpose.

Hot boxes used to transport and maintain tar at a desired temperature do not qualify in this or any other category.

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Been doing some googling it looks as if it will be everything from refrigeration lorries to 'off-grid' heating systems.

According to the government red diesel use makes up over 15% of total diesel use, ‘a significant proportion’ of which is used in urban areas. The Treasury forecasts that the consumption of red diesel in the agricultural sector has decreased.

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Interesting stuff I remember something about it last year on the other channel it was in reference to fridge/freezers on lorries I think, of course we could easily be caught up in the crossfire!! My mate does agricultural machinery and some of it has to run on white to maintain its warranty so maybe that is causing the drop? Or maybe its like Mick Longfords farm he has six wind turbines on his land and free lecce so his red diesel use has gone down with a bang, other farmers are following suit

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But, red diesel is now low sulphur just like road diesel, in fact some "knowledgable" members of this forum tell us that red diesel is now just white diesel with red dye added.

So, the use of red can not really increase urban pollution unless one assumes that the lower cost of red causes activities to happen that would not otherwise happen if the diesel was more expensive.

I guess this might just apply a little bit to boating. :D

..............Dave

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7 hours ago, dmr said:

 members of this forum tell us that red diesel is now just white diesel with red dye added.

 

Wasn't it always? The purpose of the colour is for identification, not performance, is it not?

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15 minutes ago, Athy said:

Wasn't it always? The purpose of the colour is for identification, not performance, is it not?

No,

For some considerable years "red" (marked gas oil) was allowed (and had) a very much higher sulphur content than DERV (road diesel).

The change to "ultra low sulphur" for gas oil is a relatively recent one.

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Explained here.....

 

Quote

 

Sulphur Limits on Fuel Explained

Why Are Sulphur Levels Being Limited?

When sulphur burns it produces sulphur dioxide which is a catalytic poison and contributes to degradation of an engine’s emission control systems. In addition, sulphur dioxide is one of the atmospheric pollutants responsible for ‘acid rain’. There are just two of the reasons why there has been a need to significantly reduce the sulphur contents of fuels.

A European Fuel Quality Directive was set out in 2009 which stated that as of 1st January 2011, all non-road mobile machinery should only contain up to a maximum of 10 milligrams of sulphur for every kilogram of fuel used (10 ppm or 0.001%). This made the use of fuel more ‘sulphur-free’ by reducing the levels by 99 percent and it also brought these sulphur levels in line with Ultra Low Sulphur Diesel (ULSD) EN590 for on-road use. The change to ‘sulphur free’ fuel was needed in order to comply with the latest EU non-road mobile machinery usage.

In 2010 an update was made in the UK to British Standard BS 2869 for gas oil (red diesel) requiring a limit of 10mg of sulphur per kg fuel for mobile off-road equipment. BS 2869 red diesel was split into two different categories. Class A2 covered all off-road vehicles, including trains and tractors. The sulphur content for class A2 diesel is 0.001% (10 ppm).

The other type of red diesel is class D which is used for sea-going marine vessels, stationary engines, static generators and heating boilers. The sulphur content of class D diesel is 0.1% (1,000 ppm). The red excise marker in red diesel is present to show that the fuel is subject to a different taxation category to the one which is applied to diesel (white diesel) used in road vehicles. This is one of the main reasons why red diesel is lower in cost when compared to road diesel

 

 

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The quote is

Quote

A call for evidence "on whether the use of non-agricultural red diesel tax relief contributes to poor air quality in urban areas"

So I would think this is not so much about the fuel compared to DERV, but that the relief means diesel engines are being used rather than other alternatives.

Clearly boats would fall into this catagory, but I would have thought the impact of boats is quite small, being limited to a very few urban areas and small in numbers, so not really what you would focus efforts on.

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I wonder how much diesel "Plant" there is running in London 24/7  on red diesel compared to the number of farm vehicles in a 5 mile band round the perimeter. The place is smothered in construction, just look at cross rail for a start

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1 hour ago, Mike Todd said:

Does it refer to oil fired central heating systems?

Probably not, since most run on kerosene these days, and the rest use "gas oil", which may well be the same stuff as "red diesel" but is technically a different specification.  

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11 minutes ago, David Mack said:

Probably not, since most run on kerosene these days, and the rest use "gas oil", which may well be the same stuff as "red diesel" but is technically a different specification.  

Gas oil is 'red diesel' & is "35 second Burning oil"

Central heating oil is 'Kerosene', has different burning characteristic and is a "28-30 second burning oil"

Viscosity of Hydrocarbon fuels can be expressed as the number of seconds taken for 50ml,  flowing under controlled conditions through a hole of set dimensions. The fuel in the holding cup is heated to 40°C by an electrically controlled water jacket.  When all conditions are correct, the ball blocking the hole is lifted and the stop watch started, when 50ml has flowed into the lower flask the watch is stopped and the seconds taken for this (called Redwood seconds) gives the number of the viscosity. If the refining process has been done right at 28 seconds then we have Premium kerosene, if between 28 and 32 seconds then we have standard kerosene. At least  35 seconds and under 38 seconds and we have Diesel fuel or Gas Oil, which has added red dye to show it is not for road use. The test equipment used is called the Redwood Viscometer.

 

Edited by Alan de Enfield
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"Gas oil" used to be in common use for central heating systems - we used it at home until the boiler was replaced about 10 years ago with one that burns kerosene. Our local heating oil supplier still offers a choice of kerosene or gas oil.

Gas oil and red diesel were both dyed red to indicate that they could not be used in road vehicles, but my understanding is that the specification for gas oil (for burning) was lower than that for red diesel (for use in off road vehicles, plant and machinery), but that many suppliers would sell the same product, meeting the specifications for both gas oil and red diesel, under both names to avoid the costs of storing and handling two separate fuels. 

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The tax on diesel cars has gone up and I believe the sales of new diesel cars are in steep decline.  I have had diesel cars since 2004 but expect my next car will be petrol fuelled.

White and red diesel may well be low sulphur – very low compared to what it was a few years ago. However the particulates from the exhaust are now regarded as hazardous.

I have been wondering what will happen to the price of red diesel. . However I suspect the price will increase due to tax as a deterrent to its use.

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5 minutes ago, MartynG said:

The tax on diesel cars has gone up and I believe the sales of new diesel cars are in steep decline.  I have had diesel cars since 2004 but expect my next car will be petrol fuelled.

White and red diesel may well be low sulphur – very low compared to what it was a few years ago. However the particulates from the exhaust are now regarded as hazardous.

I have been wondering what will happen to the price of red diesel. . However I suspect the price will increase due to tax as a deterrent to its use.

Interestingly looking back over the records I currently have to hand in 2010 we paid between 64 and 97 ppl for red diesel for the boat.

Last year we paid between 60 and 110 ppl so red diesel really hasn't changed that much in price over that 7 year period.

We filled up last weekend at 75ppl.

Fuel costs on a boat are so little when compared to other costs such as ongoing maintenance that I don't think an increase in the price of diesel will really deter anyone from using it.

Same with plant machinery on building sites. The machines are there to do a job. All that a duty increase on red diesel will achieve is making the cost of projects go up. The cost will be passed onto the client who will then pass in onto the end user. No winners there.

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25 minutes ago, Naughty Cal said:

 I don't think an increase in the price of diesel will really deter anyone from using it.

 

 

Tax on road diesel is already a deterrent. 

Edited by MartynG
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27 minutes ago, Naughty Cal said:

Interestingly looking back over the records I currently have to hand in 2010 we paid between 64 and 97 ppl for red diesel for the boat.

 

Checking my log-books and going back a few years (to 2001)

We were in Douglas (IoM) and they didn't have enough fuel for us at the yacht club so we had to get a tanker to come down to the harbour wall to fill us up. We took on 325 gallons (1475 litres)  at 25p / litre

With twin 6-cylinder Volvo 200's we used  14 gallons per hour at cruise speed of 3150 RPM, which worked out at roughly 1.5nm per gallon

2-days earlier we had refuelled at Rhu (Scotland) and paid 21.5p / litre

On the same trip we paid 20p /litre at Holyhead and 29p / litre at Port St Mary (Iom)

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21 minutes ago, MartynG said:

Tax on road diesel is already a deterrent. 

To whom?

I have noted no decrease in the number of lorries on the roads, and Mrs. Athy probably travels more miles per week in her diesel car this year than she has done for years. This car is far more economical with fuel than her previous petrol-engined models (about 58 mpg against the previous 37 mpg, similar-sized engine): more an encouragement than a deterrent, surely?

Edited by Athy
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