Fuelling debate and uncertainty

1 March 2022

The story here on the site a week ago discussing the likely impact of removing the red diesel tax rebate for construction users from 1 April generated some interesting feedback on social media. 

“It was a great article with some really good points,” said Liam McElhone, managing director of Advance Tool Hire in Nottingham, who thinks that many industry professionals face something of a balancing act. 

“It’s going to be a big change. If people are buying red diesel between now and 1 April, depending on how quickly they use it and how big their storage tanks are, they risk being left with some when the new regulations come into effect. 

“And the cost implications of using white diesel instead of red will be considerable,” he added. 

While the new alternative technology is not yet in place to drive very heavy plant and machinery, Scott McCall, Snorkel UK’s net zero specialist and business development manager, made the important point that many battery powered machines are indeed available now at the more compact end of the spectrum to replace fossil-fuel alternatives. 

“Contrary to popular belief there are some battery powered machines that will do the job, and charging doesn’t always need to be a full eight-hour charge either,” he said. 

“The good solutions work with the operators’ schedule of work, and short charges can be used to elongate the day without major impact. But that’s only if the manufacturer has thought it through correctly.”

And addressing the issue of white diesel being at greater risk of theft from sites and machines following the phase-out of red fuel, Chris Allen, operations director at Templant Rental Power said: “Why not offer a duty paid red diesel alternative? I have no problem paying the duty on the fuel but at least give me some help trying to keep hold of it!” 

Of course, just two days after the original blog post appeared, Russia invaded Ukraine and apart from the loss of life and destruction, this has led to uncertainty about future energy supplies and costs. Indeed, the average price of petrol and diesel has now reached a record level, according to the RAC.

Russia is the second-biggest exporter of crude oil and there are concerns that, while challenging the country's economic position, the financial sanctions imposed on Russia by the West could restrict global supplies and cause further price rises.

The red diesel rebate’s removal could hardly have come at a worse time.