As of the 1st of April, there will be changes to which vehicles are allowed to use Gas Oil. But as we approach April, there are still questions on the rule changes, such as who it affects and how to prepare – which we’re here to answer.

Which vehicles CAN use Gas Oil after the 1st of April 2022?

  • Vehicles and machinery used in agriculture, horticulture, fish farming and forestry.
  • Mowing machines, but only for maintaining land that is domestic or used for agriculture, horticulture, pisciculture, forestry, golf courses, community amateur sports clubs premises and land occupied by travelling fairs.  However, community amateur sports clubs will need to be registered with HMRC.
  • Trains, but only to power or stop the train, not for other machines on a railway. 
  • Vessels of all types, except for private boats in Northern Ireland.
  • Fuel for power generation or heating in a non–commercial settings such as a school or hospital.

Which Vehicles CANNOT Use Gas Oil After 2022?

A sweeping answer for most is if you use Gas Oil for commercial purposes whether it is construction, refrigeration or manufacturing, it is unlikely to be allowed to use red diesel after April 2022.

If a vehicle is used for mixed purposes for example agriculture and commercial groundworks, the fuel must be flushed out from the tank between uses.  

How do I prepare for changes to Gas Oil and rebated fuel regulations?

  • If you put Gas Oil in the tank of your vehicle or machine before 1st April 2022, you can continue to use the fuel until the tank is empty. We recommend keeping evidence that you refilled your vehicle before the rule changes in case of spot checks.
  • After the rule changes, if you still have possession of Gas Oil in a storage tank or container this cannot be used for non-qualifying use. The fuel must be disposed of or given to a business or person that is permitted to use the fuel. Fuel uplifted from a tank under these circumstances constitutes waste oil and could incur disposal costs. That’s why it is essential you plan your fuel use carefully over the coming weeks.
  • HMRC will carry out spot checks to ensure the new rules are being followed. As traces of Gas Oil remain in fuel tanks even after the tank is empty, we recommend that you keep paperwork proving you are following the rules. 
  • Speak to your fuel supplier now to ensure that you have the necessary credit limits in place for your buying needs post April 2022.
  • Take into account the additional costs when quoting and budgeting for upcoming projects.

What can I use instead of Gas Oil?

It is important to note that it is not Gas Oil itself that is being phased out, but the entitlement to use a rebated fuel. Gas Oil is the duty rebated equivalent of Road Diesel, and using the  alternative, Road Diesel, with its higher duty rate is the only option for commercial users after the changes in April 2022. At a duty difference of 46.81pence/litre, this will carry a significant cost for businesses affected.

If you use Gas Oil for steam raising or commercial heating there are alternatives available to you. Please contact us to discuss which is best for you.

Some users may take the opportunity to move to a greener fuel like Hydrotreated Vegetable Oil, a non-fossil fuels alternative.

Our responsibilities as a Distributor

We are here to help you understand the regulations and manage your fuel buying over the next few months.

We will also be legally bound to capture and report usage data including checking fuel use at the point of order.

Still confused? Email to receive tailored advice from our team of experts, or follow us on Facebook where we post up-to-date news on the changes.

Photo: Heiko Janowski