James D Bilsland Ltd

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Budget 2021 - How Will It Affect Red Diesel

Budget 2020 outlined the government’s plans for the future of red diesel for UK homes and businesses. The idea behind the plans was to reduce greenhouse gas emissions to meet the government’s net-zero carbon goals by 2050. However, in the early months of 2020 everything changed from the coronavirus pandemic and the last-minute Brexit agreement.

What were the plans for 2020?

Budget 2020 had instated that most users would lose the right to use red diesel from April 2022. Only a few sectors and users would retain access to the fuel, including:

  • Agriculture, horticulture and forestry

  • Railways (both passenger and freight)

  • Non-commercial heating systems (i.e. off-grid homes, domestic narrowboats and places of worship)

  • Fish farming

2021 Budget Red Diesel Changes

Several additional gas oil-reliant sectors were added to the list of users who will be able to continue to use red diesel past the April 2022 cut-off date:

  • Domestic power generation

  • Funfairs/circuses

  • Fishing vessels and water freight

  • Sporting clubs and golf courses

Private pleasure boats will also continue to have unrestricted access to gas oil for power, heat and propulsion. However, any diesel used for powering the boat will be subject to the standard level of fuel duty.

Will I Need To Clean Out My Red Diesel Tank?

If you are currently using red diesel you should run down your supply before the 1st of April 2022 cut off. Your fuel supplier also must not supply you with any more than you can use before this date.

Tank cleaning should only be carried out by industry professionals. This reduces the risk of damaging the tank and fuel contamination.

The government has also announced that it proposes to mandate that registered fuel suppliers switching a fuel tank from red to white diesel must flush out the tank and supply lines to ensure no trace of marked fuel remains. This is to ensure compliance and reduce the risk of white diesel being contaminated with the red diesel dye.


As we approach the 2022 date it is important to ensure you have a fresh supply of the correct fuel. We deliver red and white diesel across West, Southern and Central Scotland, along with the North Of England.

If you would like to request a quote for red diesel or DERV click below or give us a phone on 01360 660264.

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