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Diesel is a commonly used fuel that powers vehicles and machinery. If you own a diesel vehicle or operate big machines like tractors or dump trucks, you may have come across two main types of diesels available in Britain: red diesel and white diesel.
What’s the difference between these two types? Many individuals are uninformed that these fuels serve different purposes and are bound by varying taxes and costs. Red diesel is often used for agricultural and construction purposes and is taxed differently than white diesel, which is intended for on-road vehicles.
Understanding these differences is vital for making informed decisions and complying with regulations regarding fuel usage. Each fuel has different uses and rules. If you want to know what makes red diesel different from white diesel, this blog will explain their differences, characteristics, and uses.
White and red diesel is the types of fuels used in different vehicles and machines. Both of these have distinct uses and are dependent on several regulations.
White diesel is also referred to as gas oil or regular diesel. It is primarily used in vehicles like cars, buses and trucks. It is taxed due to its versatile use in public transport and road travel. White diesel is refined to extract a cleaner and more efficient fuel, frequently with additives that enhance engine performance and decrease harmful emissions. This makes it perfect for personal and commercial vehicles on highways and public roads.
Red diesel is straightforwardly recognised by its red dye, which differentiates it from white diesel. It is intended for off-road vehicles and machines such as tractors, construction equipment, and generators. Since red diesel is classified as off-road fuel, it is not dependent on road tax, which makes it more economical than white diesel. However, the use of red diesel in any vehicle on public roads is prohibited and can cause heavy fines and penalties. This law is imposed to avoid tax evasion and ensure that all cars contributing to road wear pay accurate fuel taxes.
Operators and businesses in transport and construction must understand the differences between white and red diesel. This helps them comply with legal regulations and optimise operational costs.
Red diesel (gas oil) and white diesel (DERV) are chemically identical but vary in their intended use, tax rate, and colour to prevent illegal road use. This difference in application and regulation affects how they are used across various sectors.
Red Diesel: Red diesel is known by several names, including gas oil, rebated diesel, tractor diesel, 35-second oil, agricultural diesel, and generator diesel. These names imitate its various applications in industry and agriculture.
White Diesel: Commonly referred to as white diesel, it is also known as road diesel, DERV, forecourt diesel, and ultra-low-sulphur diesel (USLD). The diverse nomenclature highlights its primary use in on-road vehicles.
Red Diesel: Red diesel is primarily intended for off-road use, particularly in agriculture, construction, industrial heating, and power generation. This targeted use is crucial for operations that do not depend on public roads.
White Diesel: Conversely, white diesel is designated explicitly for road vehicles, including cars, vans, and lorries. The focus on highway use requires alignment with firmer fuel rules.
Red Diesel: Red diesel, classified as a rebated fuel, benefits from a lower tax rate. This tax advantage makes it an affordable option for off-road vehicle and machinery users.
White Diesel: On the other hand, white diesel is taxed at the full rate, leading to higher costs when compared to red diesel. This ensures that road users contribute to infrastructure maintenance and other associated costs.
Red Diesel: A distinctive red dye is added to red diesel, making it easily identifiable and allowing authorities to track illegal use on public roads. Its purpose is defined primarily around off-road machinery and industrial heating applications.
White Diesel (DERV): Unlike red diesel, white diesel is not dyed, emphasising its intended use exclusively for road vehicles. The absence of dye simplifies enforcement against illegal use.
Red Diesel: Although red diesel has the same chemical composition as its white counterpart, a red dye is added to distinguish it visually. This characteristic is vital for regulatory purposes and identity verification.
White Diesel: White diesel shares identical chemical properties with red diesel but does not contain red dye. This lack of colouration allows it to be used freely on roads without any violations.
Red Diesel: It is crucial to note that using red diesel in road vehicles is illegal and can result in severe penalties in case of any violation. This regulation is enforced to maintain fairness in fuel taxation and usage.
White Diesel: Only white diesel is legally allowed to be used in road vehicles. This restriction ensures compliance with tax laws and environmental standards.
Red Diesel: Red and white diesel have the same chemical makeup; the only difference is the added red dye in red diesel. This similarity is significant for different uses that need the same fuel characteristics.
White Diesel: White diesel is chemically identical to red diesel, distinguishing it only by the absence of the red dye. This ensures consistency in performance across diesel products.
Red Diesel: The red dye in red diesel helps authorities spot illegal use, especially in road vehicles. This is important for enforcing fuel laws.
White Diesel: Using red diesel in road vehicles is illegal and can result in heavy penalties. This highlights the importance of following the rules about diesel use.
Red Diesel: Red diesel is typically economical because it has lower taxes. This makes it appealing for off-road use, especially for those on a budget. This cost benefit helps different industries that depend on heavy fuel usage.
White Diesel: White diesel costs more because it has higher road fuel taxes. This affects what fuel people choose for their vehicles.
Red Diesel: Historically, red diesel had more sulphur, but new rules have lowered its sulphur content to match that of white diesel. This change shows a focus on better environmental impact in fuel production.
White Diesel: White diesel now has a sulphur content similar to red diesel, meeting new environmental rules to lower vehicle emissions.
Red dye is added to red diesel to make it distinctive from regular, taxed diesel. It also helps authorities like HMRC detect illegal use in road-going vehicles, which is prohibited.
The red dye and other chemical markers are visual and testable identifiers, making it easier for authorities to detect and take legal action against the use of red diesel in road vehicles.
Red diesel is a form of gas oil (a low-tax fuel) permitted for use in machinery and untaxed off-road vehicles, while regular diesel is taxed for road use.
The dye can be easily detected in the fuel at levels as low as 0.3 ppm by extraction to a diluted hydrochloric acid. This allows detection of the red diesel added into motor diesel in amounts as low as 2–3%.
Using red diesel in a highway vehicle can result in fines, having your vehicle held, and the expense of cleaning the fuel system to remove the dye.
The change in red diesel tax rates, effective April 1, 2022, is intended to meet the Government’s climate change and air quality targets by reducing the use of fossil fuels and encouraging businesses to switch to greener alternatives.
The UK Government has set a target to achieve net-zero greenhouse gas emissions by 2050, and the changes to red diesel taxation were a key part of that plan.
Red diesel, a rebated fuel used for off-road transport, power generation, and certain commercial heating applications, was responsible for significant CO2 emissions. The government is ending the lower tax rate for red diesel, pushing businesses to use white diesel, which has the regular tax, or to try other fuels.
From April 1, 2022, most formerly used red diesel sectors, including construction, plant hire, logistics, waste management, road maintenance, and manufacturing, were no longer eligible for the reduced tax rate.
However, some sectors, such as agriculture, horticulture, fish farming, and forestry, could still use red diesel for accepted purposes.
The switch to white diesel significantly increased fuel costs for businesses, as the standard tax rate is much higher than the rebated rate for red diesel.
HMRC officers may check any diesel-powered plant and equipment to confirm that the correct fuel is being used.
There are penalties for illegally using red diesel, including fines and prosecution.
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