In the United Kingdom, the question of where to buy red diesel is one that concerns many industries and individuals. Red diesel, also known as gas oil, has specific uses and regulations governing its purchase and use. This comprehensive guide will take you through the various aspects of sourcing red diesel in the UK.
What is Red Diesel
Red diesel is a type of fuel that contains a red dye. It is primarily intended for off-road use in specific machinery and vehicles. The red dye acts as a clear visual marker to distinguish it from regular diesel used in road vehicles. This is crucial as the tax treatment of red diesel differs significantly from that of standard diesel. It is taxed at a much lower rate because it is meant for non-road-going applications such as in agricultural machinery, construction equipment, generators used on building sites, and boats that operate inland waters (excluding pleasure craft).
Authorised Suppliers
Fuel Depots
One of the most common places to buy red diesel in the UK is at authorised fuel depots. These are large storage and distribution facilities that deal with a wide range of fuels. Many of them have dedicated sections for red diesel. They are equipped to handle bulk deliveries, which is ideal for businesses that require large quantities of the fuel. For example, a construction company with a fleet of heavy machinery can arrange for regular tanker deliveries from a local fuel depot. These depots often have strict procedures in place to ensure compliance with tax and safety regulations. They will ask for proof of the intended use of the red diesel, such as documentation showing that the purchaser operates agricultural or construction equipment.
Agricultural Merchants
For farmers and those in the agricultural sector, agricultural merchants are a go-to source. These merchants not only supply farming equipment, seeds, and fertilisers but also red diesel. They understand the specific needs of the agricultural community and can provide advice on fuel usage and storage. They usually have smaller storage tanks on-site compared to fuel depots but can offer more personalised service. A small family farm can visit their local agricultural merchant to fill up jerry cans or arrange for a delivery to their farmyard. The merchant may also offer loyalty schemes or bundle deals when purchasing other agricultural supplies along with the red diesel.
Marinas
If you own a boat that is eligible to use red diesel (such as those used for commercial fishing or inland water transport), marinas are the place to look. Marinas often have fuel pumps dedicated to dispensing red diesel. They are conveniently located for boat owners and can provide a quick refueling option. However, it’s important to note that marina prices for red diesel can sometimes be higher than at other suppliers due to the added convenience factor and the overheads associated with operating in a marina environment. But for boaters who need to top up their tanks before heading out on a trip, the convenience can outweigh the slightly higher cost.
Online Platforms
Fuel Comparison Websites
In today’s digital age, there are several fuel comparison websites that can help you find the best deals on red diesel. These platforms aggregate information from multiple suppliers in your area. You simply enter your location and the quantity of red diesel you require, and they will display a list of available options with prices and delivery charges. Some even offer customer reviews of the suppliers, allowing you to make an informed decision. For instance, if you’re a small business owner in a particular town and need to buy red diesel for your generator, you can use these websites to quickly compare prices between different local fuel depots and choose the most cost-effective option.
Supplier Direct Websites
Many authorised red diesel suppliers have their own websites. These sites provide detailed information about their products, services, and delivery options. You can often place an order directly through the website, schedule deliveries, and even track your order in real-time. Some suppliers offer exclusive online discounts or promotions. For example, a new customer signing up on a supplier’s website might be eligible for a percentage off their first red diesel purchase. It’s worth exploring these direct supplier websites to take advantage of any such offers and to have a seamless purchasing experience.
Regulations and Compliance
Proof of Eligible Use
When purchasing red diesel, you must be able to prove that you have a legitimate off-road use for it. This could be in the form of business registration documents if you’re in construction or agriculture, or relevant boating licenses and permits if it’s for a commercial vessel. Suppliers are required by law to verify this information. Failure to provide proper proof can result in the refusal of sale, and in severe cases, legal consequences. For example, if an individual tries to buy red diesel without any valid reason for off-road use and is caught, they could face hefty fines.
Tax Implications
As mentioned earlier, red diesel benefits from a lower tax rate due to its restricted use. However, if it is misused and used in road vehicles, it is considered tax evasion. HM Revenue and Customs (HMRC) closely monitors the use of red diesel. They conduct regular checks at fuel stations, construction sites, and other locations where red diesel is stored or used. Businesses need to keep accurate records of their red diesel purchases and usage to demonstrate compliance. Any discrepancies or signs of improper use can trigger an investigation by HMRC, which can be time-consuming and costly for the business involved.
Storage and Handling
On-Site Tanks
For larger consumers of red diesel, having an on-site storage tank is a common practice. These tanks need to be installed and maintained in accordance with safety regulations. They should be properly bunded to prevent any fuel leaks from contaminating the environment. Regular inspections are required to check for leaks, corrosion, and other potential issues. A manufacturing plant that uses a significant amount of red diesel for its machinery might have a large, above-ground storage tank. The tank would be fitted with safety valves, gauges to monitor fuel levels, and alarms in case of any problems.
Jerry Cans and Small Containers
Smaller users, such as individual farmers or boat owners with limited storage space, often use jerry cans or small containers to store red diesel. When using these, it’s important to follow safety guidelines. Jerry cans should be stored in a cool, well-ventilated area away from sources of ignition. They should be clearly marked as containing red diesel to avoid any accidental misuse. For example, a weekend boater who stores red diesel in jerry cans on their boat trailer needs to ensure the cans are secure and won’t tip over during transport.
Tips for Buying Red Diesel
Compare Prices Regularly
Fuel prices can fluctuate, so it’s advisable to compare prices from different suppliers on a regular basis. This could be monthly or quarterly, depending on your consumption rate. By doing so, you can take advantage of any price drops and save money. You might find that a particular fuel depot has a special offer during a slow season, or an agricultural merchant is running a promotion to attract more customers.
Build a Relationship with Suppliers
Establishing a good relationship with your red diesel supplier can have its benefits. They may offer you preferential treatment, such as priority deliveries during peak times, or better credit terms if you’re a regular customer. If you run into any issues with your fuel order, a supplier who knows you and your business is more likely to be helpful in resolving the problem quickly.
Stay Informed about Regulations
The regulations surrounding red diesel can change. New tax laws, usage restrictions, or safety requirements might be introduced. It’s essential to stay up-to-date with these changes to ensure continued compliance. You can subscribe to industry newsletters, attend relevant seminars or webinars, or follow updates from HMRC to keep yourself informed.
Conclusion
Buying red diesel in the UK requires careful consideration of various factors. From choosing the right supplier, whether it’s a fuel depot, agricultural merchant, or marina, to complying with regulations and handling the fuel safely. By following the guidelines and tips provided in this article, you can ensure a smooth and legal purchasing process for your red diesel needs, whether you’re running a large construction project, farming the land, or operating a commercial boat. Always remember that proper usage and compliance are key to avoiding any potential legal and financial pitfalls.
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