14/01/2022
Take Note - A certain amount of customer education needs to start to preempt this. Fellow operators also.
📢 Construction Industry Costs Will Rise When It Loses Red Diesel In April This Year‼️
From 1st April 2022, many sectors will lose their entitlement to use ‘red’ diesel and rebated biodiesel across a variety of sectors.
Construction is one of the industries that is most affected.
The changes were announced by the UK government in the 2020 budget as part of the drive to achieve net-zero carbon emissions.
After the April 2022 deadline most current users of red diesel will have to switch to white diesel instead, the cost of which will need to be passed on.
Taxing most users at the full rate is intended to reflect the impact of the emissions that they produce, while promoting the use of new equipment with cleaner alternatives, which unfortunately are few and far between and still very expensive! (ie. Electric or Hydrogen or Hybrids)
Right now, ordinary white diesel is taxed at the full rate of 57.95 pence per litre (ppl). By contrast, red diesel is entitled to a rebate of 46.81ppl meaning that it is effectively taxed at only 11.14ppl.
The industry needs to start a really strong education process now, to educate the customer, as most customers will be ignorant of the facts and implications.
Projects, contracts and hire rates will need to increase to include for this, unless already adjusted.
