New Fuel Duty Rules – How it affects us?

As you may or may not be aware, as of 1st April 2022 HMRC is changing the rules on the use of Red Diesel (aka Gas Oil) . These changes affect us in the Construction Industry. The full guidelines can be found here:

https://www.gov.uk/government/publications/reform-of-red-diesel-entitlements/reform-of-red-diesel-and-other-rebated-fuels-entitlement

Due to the changes we, at Fraser Tool Hire, have implemented a change over period to transition to the new rules. From Monday 14th March 2022 we started replacing our stock of Red Diesel in favour of White. We did look at HVO which, when I was first introduced, was thought to be an alternative to White Diesel and would be rebated due to the environmental benefits, the argument HMRC and UK Government used to justify this costly change. As it transpires, HMRC are not allowing any rebate for this environmentally better fuel, and to date, is more expensive still to White Diesel.

Given the increased costs, calculated to be in the region of 60ppl, of changing to White Diesel, being passed onto the Construction Industry, along with increasing costs we all have to deal with, it would be hard to justify the further increased price of HVO. We, as a company, will continue to monitor this option and, perhaps in the future, once the powers at be practice what they preach, we will revisit it.

From the 14th March we have been refilling machines with White Diesel, if you have a machine on hire, you have the choice, you can either return the machine with less than a full tank and we shall charge you the cost for topping up with White Diesel, or you can fill it yourself with White Diesel.

Any machine retuned with Red Diesel AFTER the 1st April 2022 may incur an additional charge to empty, dispose of, and refill with White Diesel

Our price for White Diesel will be published each Monday on or website here