Fuel legislation changes

Following the government's announcement on the rules around the use of red diesel – tax-rebated fuel currently we are changing the way we handle and operate our fuel supply.

From the 1st April red diesel and red HVO will no longer be used by Selwood, only white diesel and white HVO will be available to use in our equipment.

This change in legislation is mandatory and we are taking as many steps as possible to ensure a smooth transition for our customers.

What is changing?

From 1st April 2022,  red diesel will no longer be available at a rebated rate for many commercial applications. This covers the majority of users in the construction industry.

This means it will no longer be legal to use red diesel for non-road mobile machinery, such as heavy construction equipment.

The change is being made to help meet the government’s climate change and air quality targets.

HMRC has published guidance for fuel users on preparing for the change.

What is Selwood doing?

We are asking our customers to please return equipment completely empty of rebated/red fuel.

If equipment is returned to us, with red diesel after 1st March 2022, irrelevant of the sector in which you work, disposal charges, refuelling charges, plus likely significant cleaning charges, we may apply additional rental charges of equipment until cleaned and approved ready for re-use

To reiterate, please do not return equipment to us full of rebated/red fuel.

What about new equipment hires?

The good news is that there are alternatives to red diesel. From 1st March 2022 we will begin supplying new hires with white diesel/white HVO. With up to 90% reduction in greenhouse emissions, HVO fuel is significantly better for the environment than regular diesel or biodiesel. 

Sites must ensure equipment is only filled with white fuel.

Should tanks be filled with red diesel in error, they will be deemed as contaminated and subject to cleaning and disposal fees.

How to prepare for the change
  • Your business will need to allow for the extra cost of fuel imposed by the HMRC after 1 April 2022.
  • Stockpiling fuel is illegal, so only order what you need, bearing in mind that unless you are in an exempt category you will not be able to use red-marked fuel after 1 April 2022.
  • HMRC are likely to inspect businesses to ensure compliance with the new rules - businesses that breach the rules can be fined.
  • Start to run down your stock of red diesel well before 1 April 2022.
  • Start to think about how you will secure unmarked (white) fuel as it will be at greater risk of theft.
  • Be assured that all fuel supplied by Selwood will meet the new regulations and we are carrying out extensive work and checks to ensure our supplies are compliant and customers are protected.
  • Remember that we offer a full fuel management service, including delivery to site and monitoring of equipment, helping customers ensure that appropriate fuel is used and re-ordered when needed.

If you have any questions about how this will affect you, please contact our pump rental team on 0333 014 2000