Increase in red diesel costs confirmed

Posted on March 03^rd 2008

It has now been confirmed that the full rate of duty will be added to marine fuel as from 1st November 2008, increasing it to around £1.20 per litre making it more expensive than the diesel used for road vehicles.

Private users will still be able to use the red diesel but will have to make a declaration at point of sale to the suppliers that their boat is for recreational use and not commercial use. Domestic users of the fuel will continue to be supplied at the current discounted rate, for the purposes of heating etc.

The HM Revenue and Customs is planning that the declaration of use when purchasing the fuel will be down to the boat user and not the supplier to keep the amount of paperwork down to a minimum.

This arrangement however may come under review if a large number of users abuse the system by declaring their craft for commercial rather than recreational use to avoid paying the increased duty.

The main outstanding issue with the rise in duty is of its effect on the marine leisure industry. The Royal Yachting Association have advised that they will continue to work with the Government to minimise any adverse impact that it may have.

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