From the 1st of April 2022, the tax rebate for red diesel is being removed, and it will no longer be legal for use in construction equipment and machinery in the UK. As a result of this change, The Hireman have decided to switch to Hydrotreated Vegetable Oil (HVO), and from the start of April, we will supply all of our diesel equipment with HVO fuel in the tank. We will still sell white diesel separately, but we will no longer supply red diesel.
HMRC accepts that equipment may still be running on red diesel as stocks deplete, but from the 1st of April, HVO or white diesel must be used when refuelling or topping up tanks for construction-related purposes. HMRC is also working on the basis that fuel colourisation within tanks and fuel itself will gradually change as the tanks are refilled with duty-paid fuels.
Why is using HVO fuel good for our customers?
HVO is an environmentally friendly and sustainable alternative to red and white fossil diesel, so this change will help our customers substantially reduce their carbon footprint.
HVO is a paraffinic bio-based liquid fuel originating from vegetable oils and other bio-oils. It boasts the following benefits:
- Up to 90% reduction in net CO2 greenhouse emissions – significantly better for the environment
- Renewable, sustainable and 100% biodegradable – synthesised from waste fats and vegetable oils
- Reduces notifiable particulate matter (PM) and nitrogen oxide (NOx) emissions – improving air quality
- Can be blended with fossil diesel and used in most diesel engines – for peace of mind
- Excellent cold-weather performance – improving engine efficiency in the winter
- High flashpoint – for enhanced safety, storage and handling compared to regular diesel
White diesel is roughly 30-40% more expensive than rebated red diesel, with HVO costing approximately 10% more than white fossil fuel diesel. Still, we feel that the environmental benefits of HVO justify the additional premium. Fuel prices are prone to fluctuate, so we regularly monitor them and will adjust ours accordingly. Any previous pricing agreements based on rebated red diesel will cease to apply.
We will continue to sell white diesel separately in 5, 20, 25 and 200-litre containers.
Find further information regarding diesel fuel rebates here.