The Final Curtain for Red Diesel

In 6 months time, the government will stop subsidising the tax on red diesel. For many years, red diesel has been used by many industries, including farming. When heavy plant is needed, using red diesel saves businesses thousands of pounds each year. Saying goodbye to this cheaper fuel is going to be a bitter pill to swallow for us all.

What it means for you is a significant price increase of circa 46p per litre of diesel. Buying a quantity of 1000 litres means an increase of £460, 10000 litres a staggering rise of £4600.

At the time of announcing these changes, the chancellor said, “The Red Diesel scheme allows selected users to pay duty of just over 11p per litre for diesel, compared to almost 58p per litre for everyone else. But the sectors using red diesel are some of the biggest contributors to our air quality problem – emitting nearly 10% of the most noxious gases polluting the air of cities like London. This is a tax relief on nearly 14 million tonnes of carbon dioxide every year… the same as the entire population of London and Greater Manchester taking a return flight to New York.”

We know that we’ve all got to play our part to prevent further damage to our environment and help slow down climate change, but it still means our profits are going to suffer so we need to look at how to manage fuel use effectively in the future.

Moving on and Finding Solutions

In place of red diesel comes white diesel.

The bad news is that it’s more expensive and more likely to be targeted by thieves. Industry is losing thousands of pounds every year due to stolen fuel. Unscrupulous criminals have upped their game since red diesel became a thing of the past. Red diesel was dyed to make it easier to detect when it was being used illegally. Now the dye has gone, white diesel is easier to sell on.

The good news is that we can help you streamline the efficiency of your diesel use while keeping it safe at the same time.

Let’s have a look at two of the ways Atlantis Tanks can help you save money and improve your fleet fuel efficiency.

Buy More, Store More

If you don’t already buy in bulk, now is the time to do so. This means increasing your storage capacity for white diesel.

Atlantis Tanks StoraFuel range offers tanks designed for the safe storage of white diesel. Our steel tanks come in a range of standard sizes. A bunded steel tank offers a high level of security and is often enough to stop thieves in their tracks. Find out how steel bunded tanks can save you the headache of fuel theft.

Browse our range of Standard Diesel Storage Tanks

If you’re looking for a much bigger tank, we offer a bespoke design service and can manufacture tanks with a capacity of up to 100,000 litres. All tanks comply with relevant regulations and come with a comprehensive guarantee.

Use a Fuel Management System

If you’re storing a lot of fuel, you need to know that it’s being used efficiently. A fuel management system can be installed to monitor the use of your valuable fuel – right down to individual employee usage. Only drivers that you authorise can draw fuel and access can be controlled instantly.

Fuel management systems can be used on multiple sites and by multiple dispensers. They provide real-time reports about fuel volumes used, driver details, vehicle details and much more.

Atlantis Tank's Fuel Management Systems

White diesel is here to stay. But, as they say, there’s no use crying over spilt milk. As we move on, the important thing is to ensure your valuable fuel resources are safe and your usage is strictly controlled.

There are many options to consider when investing in a new fuel storage tank. Design, capacity, location and the dispensing equipment fitted to your tank all play important roles in determining which type of tank will work best for you as well as being the most cost-effective over time.

One of the first choices you need to make concerns what your tank is made from – do you choose steel or plastic?

In our opinion, steel is usually the best choice, especially if you’re planning on storing larger amounts of fuel. Steel storage tanks provide several benefits that plastic cannot match, including durability, security and safety.

Regulations

The Environment Agency’s Oil Storage Regulations (2001) state that commercial tanks with a capacity of 200 litres or more and domestic tanks with a capacity of 3500 litres or more must be bunded.

But, even if you’re storing a smaller amount of fuel, it’s worth considering that these regulations are frequently updated to improve safety and protect the environment. Investing in a bunded steel tank whatever storage capacity is required may well prove a wise decision.

Here’s a rundown of the reasons you should be buying a bunded steel fuel storage tank:

They Last Longer

Steel tanks are the clear choice for anyone who needs to store their fuel over a long period of time. Unlike plastic, which is susceptible to UV degradation and has a much shorter lifespan in general, steel can withstand accidental scuffs from on-site machinery without sustaining significant damage. A tank made of steel will also perform better in adverse weather conditions and leaks are less likely – good news for any nearby waterways and good news for your pocket too as you’re responsible for paying any clean-up costs.

Better Security

Fuel theft is not just inconvenient and costly, it can also have a significant negative impact on your business due to the unexpected downtime it causes when fuel isn’t available. That’s why ensuring you’ve got strong security for your fuel tank should be at the top of every company’s list when planning how to protect against the growing problem of fuel theft! This is especially crucial now that it’s certain red diesel will no longer be an option after April 2022, landing a huge increase in fuel costs on thousands of industries that will have to swap to more expensive white diesel.

A well-designed and robustly built bunded steel tank provides the best security possible for your fuel. Penetrating two steel skins is far more difficult, noisy and time-consuming than simply puncturing a layer of plastic to syphon or pump out the valuable liquid. Many thieves give a bunded steel tank a miss and target plastic tanks that make their job easier.

Teamed with CCTV, lockable lids and a tank alarm, a bunded steel tank offers you the best fuel security possible.

Fuel management systems can also be installed with your steel fuel storage tank. These enable control and monitoring of your fleet’s fuel use across multiple sites or dispensers and make detecting employee fuel theft easy. Take a look at our range of fuel management systems.

Minimal Site Preparation Required

The installation process for steel tanks is much simpler than plastic ones, as all you have to do is locate the tank on a firm, flat base that is non-permeable in case of any spills. This is in line with Environment Agency PPG2 guidelines.

Siting a plastic tank is more complex. They must be installed, according to the manufacturer’s guidelines, and require a perfectly level concrete base. This often means creating the base for the tank from scratch, which comes at a substantial cost. Whereas plastic tanks can be cheaper upfront, the site preparation usually matches or exceeds the price difference between plastic and steel.

Cost

Steel tanks are more durable and secure than plastic ones, so they offer better value over the long term. A steel tank can also be moved if business needs change and you need to move your fuel storage tank to a new location. Unlike plastic tanks, there’s no worry of invalidating the warranty if you re-locate a steel tank. Because of their durability, long lifespan and ability to be moved, it’s also possible to sell a steel tank if you decide to replace it.

Better for the Environment

Plastic fuel storage tanks have been around about 20 years now and it’s becoming apparent that safely disposing of them at the end of their lifetime isn’t easy. The polymer they are made of becomes increasingly difficult to recycle as it’s been contaminated with fuel over a long period of time. In fact, very few recycling outlets are able to use the material at all so the tank is likely to end up in landfill.
Steel tanks can be resold or easily recycled at the end of their lifespan.

Finally…

If you’d like to talk to us about our fuel storage solutions, we’re happy to advise you about the best tank for your circumstances. We stock a large range of bunded steel storage tanks in various standard sizes which can be teamed with a fuel management system to improve your fuel security and efficiency.

Our Range of Steel Bunded Tanks

If you’re looking for a bespoke tank or one with a larger capacity, we offer a bespoke tank design and manufacturing service and can make tanks to hold up to 100000 litres of fuel. Please get in touch to find out more.

A new oil tank requires an investment in both time and money. Once it’s sited, your new tank may well be around for decades. This means it’s worthwhile taking some time to make sure you buy the tank that’s going to suit your needs as they change.

As well as purchasing the tank and having it installed, there are other important practical considerations. It’s also vital to ensure you comply with your local regulations to avoid the cost and inconvenience of having to change your installation setup at a later date.

Atlantis Tanks recommend that you take advice from an approved OFTEC installer. Doing so can save you time, money and legal headaches. They install tanks every day so will quickly be able to answer your questions and they keep up to date on changing legislation.

A competent tank installer will be able to quickly assess your proposed site, looking for potential hazards and noting environmental issues, such as nearby watercourses, boreholes and manholes. Environmental considerations affect where you can put your new tank and what type of tank you need to have to comply with the law. For example, you may need to install a steel bunded tank rather than a single-skinned steel or plastic oil tank.

Let’s have a look at some issues you need to think about when you’re planning a new external oil tank.

Where Should I put my Oil Tank?

A leak from your domestic oil tank or pipework can have a huge impact on property, health and the environment. It’s important to think carefully about where to install your tank so that it complies with local building regulations as well as being safe for both people and the environment.

We recommend your oil tank be installed outside, above ground within a secondary containment system. Positioning it to minimise the risk of pollution and maximise its security is important, so consider placing the tank in view of a frequently occupied room or somewhere where it can be easily monitored via CCTV. Oil theft is on the rise so security is a vital consideration.

OFTEC has this to say:

“Oil tanks are required to comply with fire separation distances in order to adequately protect the stored fuel from a fire or heat source, that may originate nearby. Tanks should be sited:

• 1.8m away from the non-fire rated eaves of a building
• 1.8m away from a non-fire rated building or structure (for example, a garden shed)
• 1.8m away from openings (such as doors or windows) in a fire rated building or structure (for example, a brick built house/garage)
• 1.8m away from oil fired appliance flue terminals
• 760mm away from a non-fire rated boundary, such as a wooden boundary fence
• 600mm away from screening (for example, trellis and foliage) that does not form part of the boundary

If it is not possible to comply with these requirements, a fire protection barrier with at least 30 minutes fire rating must be installed.” Atlantis Tanks supply fire barrier systems that can be used for this purpose. It’s also possible to install a fire resistant tank in these circumstances.

What type of tank do I need?

Whatever tank you choose, it’s important that it has been manufactured to European, British or other recognised industry standards. To comply with these regulations, tanks are tested to strict quality standards.

Single Skin Tanks

This type of tank is composed of a single skin made from plastic or metal. These are the cheapest types of oil storage tanks but they have limitations.

Single skin tanks are subject to tighter restrictions on their location. Regulations around storing domestic fuel oil are subject to frequent change. Therefore, we recommend that you choose a bunded (double skin) steel tank to avoid potential future compliance issues.

Plastic or Steel?

We would usually recommend choosing a steel oil storage tank. Plastic tanks are more susceptible to oil theft and are more likely to be damaged. Take a look at this guide on the pros and cons of plastic and steel tanks

Bunded Steel Tanks

A bunded steel tank has two skins. This is so that any spills are contained within the bund rather than leaking out of the tank. This provides the best level of protection against oil leaks, protecting your pocket, your health and the environment.

Correct Installation of External Oil Tanks

The tank must be installed on a stable, level base. The best way to achieve this is to lay concrete or paving slabs. The base must be at least 50mm thick if using paving slabs on a compact and blinded hardcore base or 100mm if using concrete.

Building regulations require oil tanks to be installed on a base that extends 300mm past the widest point in all directions. This helps prevent fire spreading from nearby vegetation or buildings.

A registered OFTEC installer, or an installer registered with another ‘competent persons scheme’, can certify their own installation in line with OFTEC regulations. If you plan on doing the work yourself, you must notify Building Control. Your work will be inspected before it is signed off.

Access Issues

Access to your tank is an important consideration when you’re choosing the best location. Your tank needs to be fully accessible to your oil delivery driver so that he/she can visually inspect it as well as access the fill point.

You will also need to be able to access the tank yourself to carry out essential maintenance and check your fuel level.

Insurance

It’s important to get advice from your insurance company about where an oil storage tank should go. They may have a view on the location and any potential risks, which could affect what insurance coverage you need. Failing to involve them may result in an unpaid claim, so it’s worth a phone call!

Atlantis Tanks – We’re Here to Help

The Atlantis Tanks team has decades of experience in helping our customers choose the right tank and the best location for a new tank. If you’d like any advice, please give us a call on 0330 999 1100.