Red diesel reminder from CPA
2 March 2022
With a month to go before the rules change relating to the use of red diesel and rebated biodiesel, the Construction Plant-hire Association (CPA) is urging owners of construction plant, and the partners they work with, to be prepared for the changes that come into effect from 1 April.
As covered in an earlier story on the blog, it will no longer be legal to use red diesel in plant and machinery being used for construction work from that date.
Kevin Minton, CPA chief executive, said: “In conjunction with our colleagues at HMRC, we have produced a recently updated guide and set of FAQs that we encourage everyone within and connected to the plant hire industry, to look at.”
The association states that hire companies who operate plant and machinery in construction that use red diesel must fill tanks with white diesel or duty paid biofuels (such as HVO) from 1 April. It says that companies can continue to operate plant with any red diesel that is already in a vehicle or a machine’s engine from that date, but they will not be allowed to refill fuel tanks with red diesel subsequently.
Red diesel can continue to be used by operators for plant and machinery that is hired out to clients if it is being used solely for agricultural or forestry purposes, but the fuel tanks must be drained and replaced with white diesel ahead of the machinery being hired out to a construction client.
Operators are not expected to flush out fuel tanks of red diesel in advance of 1 April, states the CPA, but they will be expected to make sure that any excess fuel held in storage tanks is disposed of properly. Suppliers can sell or give their excess fuel to someone still entitled to use it, sell it to an oils dealer, or dispose of it through waste oil or disposal companies.
The association is also urging members to run down stocks during March and keep records of deliveries of red diesel, and noting when and how much of the fuel has been added to engines. It also suggests recording the activity that hired-out machinery will be used for, whether construction, agriculture, or forestry purposes.
As the earlier blog post mentioned, the CPA advises members to review existing security arrangements, at depots and client sites, to deter the theft of white diesel.
The latest red diesel guidance from the association can be downloaded here.
“Over the course of the last few months, we have been working closely with HMRC to make sure CPA members receive the latest and most up-to-date information on what the red diesel rule changes mean,” added Kevin.
“We have hosted two webinars in conjunction with HMRC for CPA members, and we will be hosting another on 17 March with our colleagues from HMRC. This will allow members to put their questions directly to the Red Diesel Policy Team.”
