On 28/07/2022 10:49, NY wrote:
> That emergency authorisation to use red diesel in cars was an
> interesting one. I gather that red diesel contains chemicals which can
> be detected in the fuel system long after the red diesel has been used
> up and you've switched back to white diesel - so HMRC can detect whether
> you've *ever* done it in the past, not just if you are caught with it in
> your tank. Once the temporary authorisation came into effect, anyone
> with an old enough car to have been on the road at that time, who has
> access to red diesel, has a cast-iron get-out if they are suspected of
> using it since then - as long as they don't have it in the tank at the
> time.
>
They don't just check for the presence of the marker, but the
concentration, so they know whether it is just a trace from a while ago
or you used it last week and it's still in the tank. They are basically
allowed to make up a number and use that as the duty you owe them in
unpaid duty.
> Apparently there are ways of "straining" out the red dye fairly easily -
> no idea how, never researched it, don't want to know - but getting rid
> of the long-lasting chemical marker has not yet been cracked.
>
<Cough> Activated charcoal. <cough>
> I presume trains use red diesel rather than white diesel because white
> diesel is DERV - emphasis on the R=road, as opposed to a fictitious
> W=wheeled. Is heating oil stained red to prevent it being used in diesel
> cars?
>
Yes, rail transport uses rebated (red) diesel,as does commercial water
transport.
The rules changed recently, and now all building plant and things like
fork lift trucks in warehouses now has to use road diesel, not red,
though farmers are still allowed to use red as long as the machinery is
only used on their own farm.
The position on it for leisure craft in the UK is "interesting", as we
are allowed to use red diesel, but when using the engine to move the
boat as against generating power, we have to lay full duty on that
portion of what we buy. (The rule in Northern Ireland is different, due
to the Northern Ireland Protocol.)
> I've always wondered: how much do HGVs pay for their fuel, bought in
> bulk with economies of scale, compared with the pump price of diesel?
It varies with the size of your company and how much you get delivered
at a time. Bus companies effectively pay even less, as they get a fuel
duty rebate on their white diesel if they run local bus services, though
they have to pay full duty and then reclaim the mileage allowance later.
Most transport companies who do not have their own bulk tank on site
use agency or bunker cards, and get a discount on the pump price when
they settle up. The forecourt owner normally gets any fuel they supply
under that deal replaced litre for litre in their next delivery, so if
they sell 2,000 litres on agency, on the next tanker they are "given"
2,000 litres, plus a payment towards their running costs.
--
Tciao for Now!
John.