What has it been like for businesses since April 1st 2022, where the use of Red Diesel has largely been banned?
What impact has this had and what will be the aftermath after the dust has settled?
It’s been nearly a month since the banning of red diesel in construction. With it only being being permissable in industries such as; Agriculture, Non-Commerical heating and on the Railroads. The reason for this banning? An environmental one. Although the jury is out on whether that is the case. As an interview from the BBC suggests that it’s “a Government cash grab” https://www.bbc.co.uk/news/uk-northern-ireland-60946703. This is an interesting take, simply due to the only difference between red and white diesel being the dye.
As a consumer of red diesel here at JWH Tanks, we have felt the increase on costs. Due to the nature of some jobs that we have, external equipment is sometimes needed. Excavators being a prime example. These having been previously filled with red diesel, now require white and at additional cost. Unfortunately, there are businesses out there that will require multiple Excavators and other mobile plant vehicles and the financial impact on these firms will be a heavy burden going forward.
We might not know for 1 or 2 years, the real aftermath of what this decision has been in regards to, job losses, increase on cost to the customer and businesses having to close entirely. However, the impact right now, is anxiety and worry. With some businesses, such as a Skip Hire and Recycling company down in Essex estimating to spend an extra £18,000- £20,000 a year on fuel. https://www.bbc.co.uk/news/uk-england-essex-60900755
Ultimately, I think it’s important to express our desires of a healthy and green environment. Whether banning diesel with red dye in it for certain industries is the answer, sadly, no one knows just yet. Furthermore, the risks to theft will undoubtedly increase as white diesel will be more widely available on sites across the country.