The British Government has launched its long-anticipated consultation with red diesel users across the UK, including Northern Ireland, following the news of plans to restrict the fuel’s usage from 2022.
This past April the UK’s Cruising Association confirmed Westminster’s intention to legislate for a ban on the use of subsidised dyed or ‘red’ diesel except for agriculture, railway and non-commercial heating.
The move is being touted as a way to tackle climate change by giving businesses an incentive to improve their energy efficiency.
But it would also bring the UK into line with EU regulations, as has Ireland’s own ban on green diesel use for cruising and leisure boating which came into force at the start of this year.
The HMRC consultation, which is open until Thursday 1 October, will seek the input of recreational boaters, among others, to determine whether they and other sectors should be allowed to maintain use of red diesel beyond April 2022.
The UK’s Royal Yachting Association (RYA) insists that it backs efforts to increase energy efficiency in the short-term and to strive towards a zero-carbon future.
However, it also makes the case for retaining red diesel based on “existing supply needs, not colour, tax status or price”.
The RYA says: “Recreational boaters already pay the full rate of duty and VAT when purchasing fuel for the purposes of propulsion.
“We will therefore be looking at the proposals to reform the tax treatment of red diesel closely to see how this might affect the supply of fuel for recreational use for both propulsion and how it will impact supply for domestic usage such as heating.
“It is a fact that the further west and north you travel in the UK, the more likely it is that you will have to rely on waterside outlets that only supply red diesel for commercial purposes, such as to fishing fleets.
“In many places, some remote, the limited quantities of fuel used by recreational craft do not warrant the cost of installing additional equipment to supply white diesel for the recreational boating sector.
“If the Government removes the entitlement to use red diesel from most sectors from April 2022 and white diesel is then made as widely available as red diesel is now, then supply of fuel will not be affected.
“The RYA will be responding to this call for evidence and urges any members with an interest in red diesel to participate in the consultation.”
