‘Absolute mess’: Major diesel changes will ‘slaughter’ businesses with ban just weeks away
Thousands of diesel cars might need repairs under proposed law
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From April 1, rebated diesel – often known as red diesel – and rebated biofuels will no longer be allowed to be used as they are currently. For drivers and businesses who will be affected by the changes, they will need to use diesel or biofuel which the full rate of fuel duty has been paid for.
The rebated fuels affected by these changes include rebated diesel, rebated Hydrotreated Vegetable Oil (HVO), rebated biodiesel and bioblend, kerosene taxed at the rebated diesel rate and any fuel substitutes.
This is being done to reduce greenhouse gas emissions, by increasing the tax on the fuel to reflect the impact of the emissions, promote energy efficiency and to promote the use of cleaner fuel alternatives.
The move has been a source of concern among UK businesses and, in particular sectors that heavily rely on machinery such as construction, due to the expenses that investing on energy efficient alternatives will incur.
Operating costs are expected to rise by around 15 percent, with companies facing additional fuel expenses of between £100,000 and £400,000 per year – according to research commissioned by Resource Management Association Scotland (RMAS).
CPS Fuels found the switch from red to white diesel alone will bring an additional expense of 46.81 pence per litre used, resulting in five times as much duty rate as before.
Clive Holland, television and radio presenter and spokesperson for Fix Radio, spoke about the detrimental effects the ban will have on countless sectors across the country.
Speaking exclusively to Express.co.uk, he said: “It flew under the radar a little and I think it would have been a little bit more exposed if we weren’t looking at Covid and Brexit.
“It sort of bound up on us and to think that we’re less than a month away from it actually kicking in for the construction industry.
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“I think the ban will have more of an impact than you might think because if you consider the fuel duty on white diesel is about 57.95 pence per litre, whereas with the rebate on red diesel, it works about 12 pence per litre.
“It’s a massive, massive knock-on. So many vehicles and tools run and red diesel and so that has to change overnight.
“My main concern is that there was no ‘take your time or have a concession here or there’.
“Previous Governments lauded diesel and said it was the way forward. Now, we’re getting absolutely slaughtered for driving around in a diesel.”
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