Fuel for thought

23 March 2022

The imminent removal of the rebate on red diesel for construction users is obviously making many hirers look at how they will store and transport fuel in the future.

As the blog has reported earlier, some businesses have invested in larger storage tanks that can hold bulk quantities of white diesel and benefit from a modest discount per litre – and every little helps at a time of record fuel costs. 

However, this could have insurance implications since the amount of fuel being stored will have a greater value and, in some instances, won’t have been insured before.

“I’m talking to more and more tool and equipment hirers who are going to be storing additional diesel at their premises, or doing so for the first time,” Anders McLocklan, development director with Towergate Insurance Brokers tells me. 

“So companies should check that their policies are up to date, which is something that is often overlooked. 

“Similarly, some hirers are considering introducing fuel delivery services for customers who don’t want to store diesel on site. Again, they need to check that they are adequately covered for handling and transporting it.” 

Businesses will also need to ensure that the valuable contents of diesel tanks are guarded against potential theft and that measures are in place to prevent environmental damage in the event of spills or leakages. 

Some of the other challenges that hirers and end users face when the rebate ends on 1 April were discussed in an earlier blog post. 

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