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Gas Oil Guide

Which industry can use gas oil and where is gas oil supplied?

If you’re looking to find out more about gas oil, well, we’re here to help. This guide will take you through everything you need to know about gas oil, the reasons gas oil is taxed differently from regular road diesel and which applications and vehicles this fuel can be used in and for.

Read on to learn more, or call our gas oil experts on 0330 123 1144 to get your questions answered and discuss your requirements.

What is gas oil?

Gas oil, also commonly known as red diesel, is a type of fuel used within the UK strictly for off-road diesel engines and other vehicles where road tax is not applicable.

The reason for a tax on gas oil is that gas oil and road diesel are the same fuels. Red diesel is only allowed to be used in off-road vehicles such as tractors and heavy machinery. Red diesel is dyed so law enforcement can distinguish the difference between the lower-taxed red diesel and the much higher-taxed road diesel.

Vehicle owners that require diesel can be tempted to use the lower-taxed red diesel to save money on fuel; this is illegal, and gas oil should not be used in vehicles on public roads except in very specific exceptions. You might have heard the terms for gas, fuel, red diesel and road diesel before, but may be unsure of the differences between each. We break down the differences below:

Gas: A specific liquid or vapour that can be a fuel

Fuel: This is the broad term for any material which can be burnt to produce heat or energy

Gas Oil: A fossil fuel which is used to heat, power and generate energy

Red diesel: With a reduction in VAT, red diesel is a lower-cost alternative to gas oil and is dyed to distinguish when it has been misused

Road Diesel: Also known as white diesel as it doesn’t contain the red dye the red diesel contains but the contents are essentially the same

What else is gas oil known as?

Gas oil, as we have mentioned above is known as red diesel, but are there any other names which the fuel is also known as?

• Cherry
• 35 seconds
• Heating oil

There are other names that gas oil is known as but the ones above are the most commonly heard names.

Where does gas oil come from?

Gas oil is distilled or manufactured from crude oil, a black, viscous liquid that is extracted from deep underground and refined into several petroleum products. The image below shows the varieties of fuel that can be made from crude oil depending on how it is distilled.

Gas oil vs Diesel

There is a similarity between both gas oil and diesel and the main difference comes from taxation and the usability of the two, let’s take a look below to see the similarities and differences:

Similarities:

• Both gas oil and diesel are fuels derived from crude oil
• They share almost identical chemical composition and performance characteristics
• Both are suitable for diesel engines

Differences:

• Gas oil is taxed at a significantly lower rate than regular diesel
• Gas oil is dyed red to distinguish the difference between that and road diesel
• Gas oil can only be used for off-road vehicles and machinery which we touch on below

Which industries use gas oil in the UK?

There are plenty of industries that need gas oil in the UK, though new rules came into effect in April 2022 to limit the use of gas oil within certain industries. The following industries can still use gas oil:

• Agriculture
• Horticulture
• Forestry
• Fish farming
• Sailing, boating and marine transport (excluding private pleasure craft in NI)
• Non-commercial electricity generation & heating
• Rail transport
• Community amateur sports clubs & golf courses
• Transport – Rail & Waterways

Though these industries can use gas oil, there are still restrictions within these that limit the use of gas oil.

The reason the government has reduced the use of gas oil is to encourage businesses to use more sustainable fuels to help the fight against climate change.

What are the law changes?

As of April 2022 the “reform of red diesel and other rebated fuels entitlement” was implemented, affecting businesses and individuals currently entitled to supply or use rebated gas oil and rebated biofuels.

More information on the changes can be found in our red diesel tax changes guide.

What sectors cannot use red diesel after April 2022?

After the changes to the law in April 2022 the following sectors are unable to use red diesel:

• Construction
• Plant hire
• Logistics
• Waste management
• Road maintenance
• Manufacturing
• Plus many more sectors

Is it just red diesel which is affected by these rule changes?

The changes to the law surrounding red diesel will also have an effect on rebated biofuels which includes the use of rebated HVO (Hydrotreated Vegetable Oil), biodiesel and other fuel substitutes.

Non-rebated versions of these fuels are unaffected.

What vehicles can still run on gas oil?

There are plenty of vehicles that can still run on gas oil or red diesel despite the changes to the law in recent years. 5 specific types of vehicles and machinery are legally allowed to use gas oil to operate, they include the following:

Excepted machines: Specific kinds of machinery and vehicles when being used for a particular purpose can use rebated fuels

Vehicles: This includes vehicles that are designed for use on railways, for agriculture, mowing machinery or unlicensed off-road vehicles

Vessels: Boats and marine transport except for private pleasure craft are classed as excepted machines which are allowed to use red diesel

Heating and electricity machines and appliances: This type of machinery is primarily for heating and electricity for premises that aren’t used for commercial purposes can use red diesel

Other machinery: This includes machinery in agriculture, horticulture, aquatic farming and forestry. Golf courses or land maintained by amateur sports clubs are also entitled to continue the use of red diesel

Read more on the usage of red diesel – and find out if your specific use case is still legal – on the Gov.uk website.

What can happen if I use gas oil illegally?

If you’re caught using red diesel illegally there is no maximum fine so the punishment will be based on the severity of the fuel usage. You’ll likely be charged a fine but you could also expect to pay for the removal of red diesel from your vehicle, tanks or generator, including the cleaning tanks to remove the dye.

What happens if I fill my tank with the wrong fuel?

If you have filled your car up with gas oil and your vehicle does not run on diesel you will need to contact the RAC or get advice from the AA, to remove the wrong fuel from your vehicle safely.

If your vehicle does run on diesel and you accidentally fill it with marked red diesel, then you should contact HMRC, who will advise you on the next best steps.

Where can I buy gas oil?

To order gas oil from Beesley Fuels you can contact us on 0330 123 1144 and our expert team will be able to provide you with a quote. Just let us know the amount of gas oil you require and where you’re located and we’ll do the rest!

We’ll deliver your fuel within 24-48 hours using our standard delivery service, but we can get it to you sooner if you require it on a same-day basis or out of the usual working hours via our emergency delivery service. Ensure you let our team know that your delivery is urgent and we’ll organise an urgent delivery so you won’t have to wait long for that much-needed refuel.

If you still have on gas oil, why not check our Gas Oil FAQ page?

If you’re interested in purchasing gas oil or have any other questions about its usage, call our gas oil experts today on 0330 123 1144 to discuss your requirements and to check their your industry and usage is eligible to use it.