Garage owner is seeing red over new rebated diesel law
THE owner of Derbyshire’s oldest fuel station says around 80 per cent of his customers have been hit by a new law on red diesel.
Ross Molloy, who owns RGM Brailsford Garage, predicted his business would suffer when the Government changed the rules on rebated diesel.
Rebated, or red, diesel is subject to less fuel duty than white diesel, otherwise known as normal road fuel diesel, and is therefore cheaper.
The red variant contains red dye along with other chemical markers that mark it out as rebated.
Earlier this month, changes were implemented by the Government which meant that rebated diesel was to be banned in several situations.
People are no longer allowed to use rebated diesel for nonroad mobile machinery – this includes cranes, bulldozers, and powering mobile generators on construction sites.
Ross said: “They are drastically reducing the amount people can use in red diesel.
“Nobody in construction, no JCB drivers, no plant machinery, even heating, if you have commercial premises you can’t use red diesel in it now.
“Everything is going to go up. The price of any construction or building work will go up.”
Rebated diesel is still permitted to be used in certain industries, such as agriculture and railway, but everyone else must use diesel or fuel that has its full rate of fuel duty paid.
Red diesel makes up about 15 per cent of total diesel usage in the UK, according to the Government.
Ross said: “People can still use it (red diesel) for golf courses, recreational activities, agricultural activities, and still use it for trains.
“You can use red diesel to heat your private garage at home, but not on commercial premises.
“I sell a lot of red diesel by the pump, I have a heck of a lot of construction businesses which buy it off me, and they won’t be able to have it off of me.
“I’m not making much on it anyway, and 80 per cent of my clients won’t be able to have it, so is it worth me selling it?”
The decision has been criticised by the director of policy and public affairs at the Road Haulage Association, Rod Mckenzie.
He said the change would “damage the business” of hauliers and argued it would cause a £1.4bn hit to businesses and small hauliers.
Other opponents have pointed out that the new rules would start to have an impact on the already spiralling costs of living, as increased haulage and industrial costs filter down to the consumer.
Eighty per cent of my clients won’t be able to have it, so is it worth me selling it? Brailsford Garage owner Ross Molloy