Act Now to Save Money on Red Diesel

Did you know the Government are set to remove tax treatment of red diesel in April 2022?

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

Why is this happening?

The chancellor made the announcement in his 2020 budget statement, explaining that the changes are an attempt to cut down on air pollution.

He 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.”

He went on to admit that he was fully aware of the impact the new legislation will have on many industries, which is why the changes are not coming in until April 2022.

However, according to industry experts, this is a devastating blow and could cost the UK construction industry between £280m to £490m a year. They also predict an escalation in fuel theft.

With no low-carbon fuels readily available or construction equipment that uses these sources of energy, fears are that the impact of increased fuel costs will inevitably be passed on to customers.

Kevin Minton, chief executive of the Construction Plant-hire Association (CPA) said, “At a time when business investment remains weak, this move will undermine the construction sector at the point when it is meant to be upskilling, investing in new technology and planning for the future.”

Who is affected? All industries except agriculture, rail and domestic heating.

What can you do?

#1 Stock up!

With such a large cost increase very firmly on the horizon, now is the time to stock up on red diesel at the current prices. This means increasing your storage capacity.

Atlantis Tanks StoraFuel range offer tanks designed for the safe storage of red diesel in a variety of sizes to suit any consumption.

But it’s important to act fast. In light of the coming price rise, Atlantis Tanks are anticipating a large increase in demand for diesel storage tanks as savvy customers act to keep their costs down.

Check out the range of tanks suitable for storing red diesel on our new website: https://atlantistanks.co.uk/products/portafuel-storafuel/diesel-tanks/

All tanks comply with relevant regulations and come with a comprehensive guarantee.

Atlantis PortaFuel and StoraFuel tanks – a name you can always trust and a second-to-none delivery service. Wherever possible, we’ll have your tank to you by the next day!

Can you act to stop the price increase?

Fuel suppliers have been asked by the Government to advise their customers of this price rise.

Some fuel suppliers are challenging this new ruling, approaching local MPs, lobbying key Members of Parliament and the House of Lords.

If you want to voice your concerns about these changes, we urge you to write or email the Treasury. You only have until the 1st of October 2020 to do this so ACT FAST.

The email address and postal address are listed below:

ETTAnswers@hmtreasury.gov.uk

Red Diesel Consultation, Energy and Transport Tax Team,
HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ

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