From 1 April 2022 you must not put rebated fuel (Red Diesel) into the tank of a vehicle, vessel, machine or appliance that is not allowed to use it. Any fuel already in the tank can continue to be used up, if it was legally put into the before 1 April 2022.
Rebated Fuel (Red Diesel) in Storage Tanks
If you’re no longer going to be allowed to use rebated fuel from 1 April 2022 as a result of these changes, you should plan to use up stocks of fuel held in storage tanks by this date. It would be a good idea to check how much Red Diesel you are likely to use and only order the amount you expect to use by 31 March 2022.
You will not be expected to flush out rebated fuel from your storage tanks but traces are likely to remain in fuel tanks and HMRC may carry out spot checks.
Find more information about rebated fuel held in storage tanks and used for contingency back-up electricity generation and critical safety or environmental protection equipment used in commercial premises – https://www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022/how-to-prepare-for-the-changes-to-rebated-fuel-if-youre-a-fuel-user#electricitygeneration
If you have any surplus rebated fuel in your storage tanks after 31 March 2022, you will need to:
- sell or give it to someone who is allowed to use it
- sell or give it to any Registered Dealer in Controlled Oil (RDCO)
- dispose of it via an approved waste oil recycling or disposal company
You can sell or dispose of the surplus fuel without needing to be approved by HMRC as an RDCO, but you will need to keep records to show how and when the fuel was disposed of or sold.
You should make sure that you dispose of surplus rebated fuel correctly and safely through an approved waste oil recycling or disposal company.
If you have a large volume of rebated diesel already in reserve and are concerned that you will not be able to use or dispose of it before 1 April 2022, please contact KpH Environmental on 01883 346 604 for advice.