Government U-turn on red diesel welcomed
Sailors in England, Wales and Scotland will still be able to use red diesel to propel their vessels. The announcement was made by the UK Chancellor Rishi Sunak in his 2021 Budget. In Northern Ireland, however, red diesel will be banned to ensure the UK meets international obligations under the Northern Ireland Protocol of the Withdrawal Agreement.
Last year the government announced it would remove the subsidy on red diesel from April 2022, although boaters would still be able to use subsidised fuel for heating onboard. In the UK, most marinas sell red diesel on a 60/40 split of full and lower tax rates for propulsion, and heating or power generation.
The RYA, the Cruising Association and British Marine have all welcomed the Chancellor’s announcement after campaigning against the ban, citing concerns about fuel availability and the safety implications it may have had for sailors.
UK cruisers visiting the EU are being advised by the RYA to keep all receipts to prove that the fuel was bought in the UK, and request that the retailer marks them ‘duty paid’; log the date of refuelling and engine hours to reinforce these records; and to only carry marked diesel in their main fuel storage tanks.