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Plain advice without the jargon
Clear guidance helps you understand fuel regulations without unnecessary technical language.
Practical advice on the right fuel solution
​Guidance tailored to your specific fuel type, system and requirements, helping you choose the most suitable solution.
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Crucial information for all users of gas oil (red diesel)
The rules governing the use of gas oil, commonly known as red diesel, changed on 1 April 2022. Since then, many businesses and industries that previously benefited from the reduced rate of fuel duty have no longer been permitted to use red diesel for their activities.
The changes restricted entitlement to red diesel to specific qualifying uses and sectors. Construction and many other commercial activities were among those affected, with businesses that no longer qualified having to use white diesel instead.
Northern Oil Co. Ltd can help customers understand the current requirements and choose the appropriate fuel for their needs. If you are unsure whether your equipment or activity qualifies for red diesel, speak to our team before ordering.
Who can continue using red diesel?
If you were using red diesel to heat your commercial premises, you may be eligible to use industrial heating oil, which offers a significant saving compared to white diesel.
Since 1 April 2022, red diesel has only been permitted for certain qualifying uses under the current rules. Eligible uses include activities within areas such as:
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Agriculture
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Amateur sports clubs and golf courses
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Fish farming
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Forestry
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Horticulture
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Non-commercial heating
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Certain public-sector uses
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Rail
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Travelling fairgrounds
Eligibility depends on how the fuel is being used, not simply the type of business purchasing it. If your use does not qualify for red diesel, you will generally need to use white diesel.
If you are uncertain which fuel is appropriate, contact Northern Oil Co. Ltd for practical guidance before placing your order.
What the changes mean for your business
The restrictions introduced in April 2022 continue to affect the fuel choices of many commercial users.
Fuel costs
Businesses that are no longer entitled to use rebated red diesel generally need to use fully duty-paid white diesel instead. This can result in higher fuel costs, making careful fuel purchasing, storage and usage management particularly important.
HMRC compliance
Businesses must ensure that red diesel is only used for qualifying purposes. Keeping accurate purchasing and usage records can help demonstrate that fuel is being used appropriately.
If you have changed fuel types or have concerns about contamination, sediment or the condition of an existing storage tank, professional tank cleaning may also be worthwhile. Northern Oil Co. Ltd can recommend trusted tank-cleaning specialists where required.
Site security
Businesses storing white diesel should also consider appropriate site security. Tank monitoring and telemetry systems can help identify unusual fuel usage, improve stock management and reduce the risk of theft.
We’re here to help
Northern Oil Co. Ltd provides practical support to customers choosing and managing their fuel supply. Our experienced team can discuss red and white diesel requirements, tank telemetry, tank cleaning and alternative fuel options to help you find the right solution for your operation.
Frequently asked questions
