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Are You Paying Too Much for Diesel Fuel?

You may be paying too much for diesel fuel and not even realise it. If you are buying diesel fuel and supplying industrial, construction or farm equipment as well as over the road trucks with the same fuel, you could definitely be paying too much. For advice on ways to solve this dilemma, contact your local fuel supplier.

What is Red Diesel?

The biggest difference between the diesel fuel in an over the road truck and a tractor using red diesel fuel, is the taxes on the fuel. The government imposes significant taxes to pay for roads, bridges and repairs to maintain them. These taxes apply to vehicles designed and intended for use on public roads.

It derives its name from the red dye added to the fuel to distinguish it from the same diesel fuel used on the roadways. Using this dye allows fuel oil distributors to sell diesel fuel without charging highway use taxes. The government monitors this program by checking highway vehicles using diesel fuel for the red dye.

What are the savings using Red Diesel?

The difference in taxes between regular diesel and red diesel fuel is approximately 47.5 pence per litre. Using a mid-size tractor or bulldozer with an average fuel usage of 39 l/hr the savings would be over £18 per hour or approximately £148 per day assuming an eight hour day. Extrapolating this number over the period of a year and then over an entire fleet, it is easy to see the impact using red diesel fuel can have on a budget and the bottom line.

These same savings can be applied to any off road vehicles including agricultural, manufacturing, farming and marine. In addition to rolling stock, there are many pieces of equipment, such as generators or pumps, that can use red diesel and add to the savings in much the same way.

Where can i find Red Diesel?

This fuel is available from a vast number of registered red diesel suppliers’ across the UK. Many companies have fine-tuned their process to make sure you never run out. Orders can come in bulk quantities delivered by articulated tanker and smaller deliveries can be as small as a 205 litre barrel. However, if an emergency arises, many companies are prepared to make a guaranteed same day delivery.

Many of the big companies operate 7days a week, 365 days a year. With fuel prices constantly changing make sure you call around to get the lowest available rate. If you already have a red diesel supplier who you work with consistently, you may want to see if they will match the lowest bidder. Loyalty has value and developing a relationship with one supplier can pay dividends.