Red Diesel Explained
Commercial fuel taxation is a necessary evil, but the taxes levied often reach nigh extortionate levels. We pay these taxes primarily to support the maintenance of our roads and transport systems, but oftentimes, the facts surrounding this particular need for taxation, are greatly misunderstood. Many see the tax as the cost of driving, but in truth this tax is solely designed to charge road-users for the services rendered.
So for those of us who require fuel for use off-road, there exists a rather cheap alternative. Red Diesel is a duty free fuel product that is made specifically for use with in the agriculture and shipping industries. The lack of taxation on this form of fuel, for example, allows farmers to power their harvesters and various other equipment with little cost to themselves, as their work would deem the fuel tax deductible anyway. The use of Red Diesel eliminates the need for the long-winded process of accounting for every drop, in order to claim returns on work expenses.
The reason for the red hue of the duty free fuel is to ensure that it is only used within the industries it was originally designated for. The red dye cannot be removed from the liquid, and it serves to the purpose of allowing law enforcement agencies to discover if the fuel is being used in a manner not intended, for example in the tanks of cars on the road.
The lack of taxation applied to this fuel makes it an incredibly lucrative business opportunity for those who wish to sell it to your average driver, and it’s for this reason that the red dye is added. This allows police, who believe that red diesel is being used to run a road vehicle, to dip-check the tanks of any vehicles that believe may being exploiting this product.
For those of you who aren’t already making use of red diesel in order to run your equipment, I would recommend switching as soon as you are able to determine your eligibility. By doing this you will save greatly on your overheads, and it will allow you bypass any taxes that you may not actually be responsible for paying.
Here at Ingoe Oils we can deliver red diesel to any farming and industrial complexes within the UK, so contact us now and allow us the opportunity to live up to our already sterling reputation, whilst saving you a great deal of money.