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Gas Oil Duty Changes


In March 2021, the UK Government announced gas oil duty changes, which mean that as of the 1st April 2022 the rules on the tax relief of red diesel are changing.


The revision to the current taxation means that many sectors that use red diesel will no longer receive tax relief and will be required to switch to an alternative fuel such as white diesel (DERV), or a greener product in HVO30. Organisations previously using red diesel for commercial heating will also have the option of Prem35.


What is changing with the gas oil duty changes?

As of the 1st April 2022, many sectors will now need to use an alternative to red diesel, as they are now being forced to use a different fuel that is taxed at the standard rate for white diesel.

The laws are changing as part of the UK Governments push to achieve a net zero emissions target by 2050. The changes are to encourage the development and usage of cleaner, more sustainable fuels and while this is a positive environmental step it does present a challenge to a wide range of sectors and businesses.

Many businesses may have assessed their usage and planned their transition to an alternative following the gas oil duty changes, but we are aware that there are others that are unsure of whether they remain exempt or not and what the financial implications are to their business in having to switch from red to white diesel.


Who will be affected by the changes?

We here to help shed light on some of the grey areas surrounding the upcoming changes. If you currently use red diesel in machinery, generators or for heating purposes in the following sectors you will be affected by the changes.

  • Construction, mining, and quarrying
  • Manufacturing
  • Plant hire, transportation/ logistics, waste management
  • Highway maintenance
  • Airport activities
  • Ports and harbor activities

From the 1st April 2022 we will only be able to supply red diesel to your business if that application is for the sole purpose of the following

  • Agriculture, horticulture, forestry, and fishing
  • Flood and snow clearance including gritters
  • Propulsion of passenger, freight, and maintenance vehicles on rails
  • Propulsion of commercial boats including passenger ferries and water freight
  • The powering of machinery (including caravans) of travelling fairs and circuses
  • Non-commercial heating in homes, places of worship, NHS hospitals, townhalls and permanently moored houseboats
  • Amateur sports clubs and community sports centres, golf courses (including activities such as ground maintenance, and the heating and lighting of clubhouses, changing rooms etc.)

Over the upcoming weeks and months will be publishing more information on the changes but for a full list of sectors and exemptions of use for red diesel you can check on the website or check with HMRC to confirm your exemption status.


Changing to an alternative – what does that mean?

Red diesel is currently used by a number of industries in machinery and equipment, and it makes up for around 15% of the diesel that is used in the UK. However, users currently only have to pay 11.14p per litre as a duty rate in contrast to the 57.95 ppl for white diesel. This means that these sectors are going to miss out on making a saving of 81% when they make the switch. For those sectors that are going to need to make the switch to white diesel then they are clearly going to miss out on savings.


Failing to comply with the regulatory changes can result in heavy fines. It is therefore recommended that your business starts to plan for the transition if you are going to be affected. Here a just a few things to consider:

  • If you stock red diesel for an application that will be affected by the changes you will need to run the stock down before the 1st April deadline. There is no grace period after this date.
  • Retain proof of purchase for red diesel to prove that you have not stockpiled red diesel for the intended use after the 1st April
  • You may require an additional tank to store white diesel and avoid cross contamination of red and white diesel products
  • If you intend to use the same tank for storing white diesel that once held red diesel, you may be required to flush the tank and supply lines before the 1st April
  • Check the condition and security of your tanks. Many businesses are targeted for their fuel and fuel theft is expected to increase as more switch from red to white products.
  • Fuel usage and efficiency can be monitored by using a telemetry device. We can provide the latest radar unit technology to monitor tank levels and set up alerts when running low. This can also help alert you of leaks or theft too

We do offer and can assist in the clearing of tanks and lines if this is something you feel you may need assistance with.


What are the alternatives following the gas oil duty change?

Once you have assessed whether your business will be affected now is the time to start planning the switch to an alternative. We have a wide range of products that are suitable replacements:

  • Standard White Diesel (Derv)
  • HVO30 – A blended drop-in replacement consisting of 30% Hydrotreated Vegetable Oil (HVO) and white diesel offering a cleaner alternative
  • Prem35 – an efficient replacement fuel for commercial heating applications in boilers or burners. Prem35 is a cost-effective alternative

Please call your local depot and speak to one of our experts for more information on any of the alternative products. We are here to help you and your business manage the transition if required.


More information

Gov UK – Reform of red diesel and other rebated fuels entitlement

Related articles

Are Premium fuels worth it?
Hydrogenated Vegetable Oil (HVO)
FAQS – Kerosene


Premium fuels

Are Premium fuels worth it?

Most home heating fuels are refined from crude oil and their characteristics vary during the refining process which create impurities. Premium fuels help eliminate such impurities but do not alter your home heating oil’s chemical properties.

By removing the impurities, premium fuels can improve the efficiency of a system and can be very cost effective over the long term. Premium fuels often contain a range of active ingredients that help to maintain healthy performance and prevent negative processes such as sludge build up or corrosion. Using premium fuels, as with regular servicing, can increase the lifespan of boilers, engines and combustion systems, so the key to understanding the value of the premium fuels is to look at both long term efficiency performance and the increase in longevity of the mechanism.


Introducing Premier Pure Premium Fuel

This is domestic kerosene that is used for heating purposes. Usually, it is fragranced for those that live in environments that are sensitive to fuel scents. Premier Pure has been made to make sure that homes get the top quality premium kerosene that serves them well.


About Premier Pure

  • Premier Pure premium fuel is known to lower to amount of carbon emissions
  • It is effective oil in preventing the formation of sludge in the heating boilers
  • While using Premier Pure premium fuel, your boiler will be protected against problems that require frequent repairs
  • Most fuels lead to the build-up of deposits, especially around the heat exchanger surfaces and around the nozzles. However, with Premier Pure premium fuel, the deposits will not build up in the same way
  • This type of oil is known to improve the efficiency of the operating systems
  • Premier Pure premium oil can improve the lifespan of your heating system. It is made in a way that boosts thermal efficiency and cuts down on soot and carbon in your tanks
  • Premier Pure used alongside a blend of fuel stabilisers, chemicals, and lubricants will reduce wear and tear and ensure your system will last longer


What are the key Premier Pure premium fuel components?

The following are the main components of Premier Pure premium fuels:

  • Detergents
  • Dispersants
  • Metal deactivators
  • Anti-oxidants
  • Corrosion inhibitors

The fuel stabilisers and dispersants are very crucial components in the oil. The fuel stabiliser helps in inhibiting the formation of deposits when the fuel is heating up. The dispersants make sure that the tiny deposits are formed to exit through the nozzle and are completely burnt. Thus, these two powerful additives combined ensure that deposits won’t build up on the heat exchanger surfaces or even the nozzles.

The metal deactivator is used to cut down on fuel degradation, which is usually caused by metal interaction in the fuel system. The lining of the heating systems is often lined with copper, making the oil darken and degrade when both come into contact.

Corrosion inhibitor is purposely created to prevent wear and tear that may form in the heating systems. Thus, with Premier Pure, your heating system will have fewer rust deposits, and the metals will last longer.

The detergents used give the fuel a fresh smell when burnt.


Benefits of Premier Pure

  • Premier Pure is domestic kerosene available with added fragrances that give a fresh smell in environments sensitive to foul odours from fuels.
  • Lower carbon emissions. Premier Pure burns at 95 percent or more efficiently thus limiting the amount of carbon that is released to the environment.
  • Premier Pure increases the shelf life since the fuel does not degrade.
  • Since the system does not rust, you do not have to replace its parts regularly. Thus, by using Premier Pure service problems are reduced and the heating system serves you better and for a longer time.

Everything you need to know about boilers

A boiler system is purposely designed to heat the water inside a tank that supplies it hot through pipes. The boiler can also supply steam from the boiled water via pipes and radiators to release warmth. Most boiler systems in a residential setting are hot water heating systems. During the cold months of winter, both the hot water and steam producing boilers are excellent hearing systems to supply you with warmth.

Typically, a boiler sits on a burner and the burner burns fuel to release heat. Many boilers use natural gas, which is usually piped to the homes directly. However, often in rural area, natural gas lines do not serve most of the residences and so oil boilers are common.


Evaluating different types of boiler systems

There are three main types of boilers, system, heat only and combi. System boilers produce hot water for a storage cylinder which is used to for central heating. System boilers, unlike conventional boilers, take water in via a direct supply from the mains. A heat only boiler, also known as a regular or conventional boiler, usually has two tanks, a hot water cylinder and the actual boiler, situated in an elevated space such as a loft.

The third type of boiler, a combination or combi boiler, is supplied directly from the water mains. This means that you won’t need a hot water storage cylinder or a water storage tank as with other systems. When you use the hot water tap with a combi boiler, the gas burner is ignited and a heat exchanger transfers the energy to the water, which allows hot water to be generated almost instantly.

One of the key considerations when purchasing a boiler system is the system’s operating efficiency. The level of efficiency of your heating system will depend on the percentage of fuel that is used to create heat. Thus, a more efficient heating system translates to more savings on heating costs.

While evaluating a heating system’s efficiency, there are two common types, standard systems and high efficiency systems. Standard boiler systems are less energy efficient, usually operating at around 84 percent of maximum in efficiency levels. Standard boilers are also less costly in terms of upfront costs compared to high efficiency systems. High efficiency boiler systems are classed as having an efficiency that is more than 90 percent.

Still want more? For more information about the different types of boilers we recommend the Which? article “What are the different types of boiler?”

What makes a boiler high efficient?

A boiler works by heating water, conducting the hot water through pipework, radiators, radiant floors systems, or a coil. However, what makes some boilers high efficiency is that they trap any heat that tries to escape back into the system. In contrast a standard efficiency boiler allows the heat to be lost in the process of conducting.


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Get a quote for premium fuel




FAQs – Kerosene


What is Kerosene?

Kerosene is an extremely well known and popular fuel. It is a flammable hydrocarbon, an element consisting of Carbon (C) and Hydrogen (H), that has been used for centuries around the world. Kerosene and other hydrocarbons are obtained from crude oil by a process known as fractional distillation.

Fractional distillation is used to produce the fuel on an industrial scale by distilling crude oil in a process similar to that used to produce diesel or petrol.


What is it used for?

Kerosene is extremely popular in aviation, both as jet fuel and rocket fuel, as the fuel meets specifications for the temperature it remains a liquid at before freezing, the speed and efficiency with which it burns and it’s relatively high flash point, the temperature at which it ignites.


When was Kerosene discovered?

Inventor Abraham Gesner trademarked the term Kerosene in 1854 but the history of heating oil goes back much further. There is plenty of evidence that as far back as 1500 BC the Chinese were using heating oil for lamps.


What are the other common names for Kerosene?

As you might expect from a fuel that’s been around since at least the 9th century, home heating oil has plenty of other names. It is commonly referred to as:

  • Boiler Juice
  • Burning Oil
  • 28 Second Heating Oil
  • Industrial Paraffin
  • C2 Kero
  • Standard Kero


How widely is burning oil used in the UK?

There are approximately 1.1 million properties in the UK that use heating oil as the primary fuel for heating, it is also used in a purer form for cooking.


What is the lifespan of heating oil?

The lifespan of heating oil is dependent upon the conditions in which it is kept. If it is stored in a purpose made, weather proof container, it should last around two years and up to a maximum of around five years.


Are there different grades of kerosene?

In the UK there are two standard grades of heating oil. BS 2869 Class C1 is used for lanterns, camping stoves, wick heaters. BS 2869 Class C2 is used as domestic heating oil.


What temperature does Kerosene burn at?

Kerosene’s flash point is in excess of 35 degrees Celsius.


Is kerosene dangerous?

The health risks associated with handling and using heating oil are minimal, provided that the fuel is used in accordance with safety practices.


What more?

Check out Kerosene: health effects, incident management and toxicology for information about heating oil (also known as paraffin and jet fuel), for use in responding to chemical incidents.


Have a question that you can’t see the answer for? Contact us and let us know.