Red Diesel Prices

Why is red diesel cheaper than regular white / road diesel?

The main reason for this is because red diesel which is also known as gas oil is a rebated fuel for use off-road. That means that it can legally be used by vehicles such as those used on farms and construction sites as well as in homes and businesses as a heating fuel and other uses such as diesel generators.

Unlike every other fuels intended to be used on the road which include a fuel duty which is applied to every litre you purchase by HMRC and the UK government at a flat rate of 57.95 pence per litre (ppl). Red diesel is a rebated fuel, which simply means it’s taxed at a lower rate and the reason for this is because they’re not intended to be used on the road.

In fact, red diesel and other rebated fuels have a fuel duty rate of only 11.14 ppl, that’s a rebated rate of 46.81 ppl which is roughly an 81% discount on the normal fuel duty rate. Not only that, but for sales of red diesel up to 2,300 litres, a lower 5% VAT rate is applied with the full rate of 20% only applied on sales over 2,301 litres.

Of course, here at red diesel near me, we’ve made it easier for you to find local red diesel suppliers to shop around and find the very lowest prices on red diesel no matter where you are in the UK.

What is the cheapest price for red diesel and white / road diesel

Of course we all want to pay the lowest possible prices on everything we buy, so fuels like red diesel and road diesel are no different. Whenever any of us are on the hunt for the lowest fuel prices, we never really have any comprehension of what the lowest possible prices are we could likely pay. So with that in mind, we’ve taken a look to see what the lowest prices are for red diesel that we could feasibly expect to pay.

As we’ve already explained, HMRC and the UK government apply both a fuel duty and VAT to the price of the fuels we buy.

Realistically, even if the oil refineries and oil suppliers were to give away their fuels for free. There would still be a minimum cost price at the pump for all fuels, whether that be red diesel or road diesel. The actual prices the suppliers charge you will vary and will never be lower than what you see below. As so, it’s well worth shopping around for a cheaper red diesel price to get the best possible price. Your mileage (sorry for the pun) on the saving by doing this will very much depend on where you buy road diesel and red diesel from and in the case of rebated fuels such as red diesel and kerosene, the time of year you buy them.

* Bear in mind, the lowest possible prices are a base price not including additional fees applied by the oil refinery and fuel suppliers to supply these fuels t you. The prices are only made up of the fuel duty and associated VAT rates.

We all know that the UK isn’t agreat place to live as a car owner, since our fuel prices are one of the most expensive in the world in large, thanks to the fuel duty and VAT added to the fuel prices. It’s unlikely that any UK government will ever consider decreasing the fuel duty rate, but there is ever chance that it could increase in time.

In fact, from 1st April 2022, the UK government plans to make changes to current legislation banning some current uses of red diesel which will effectively remove the fuel duty rebate for many industries. This is likely to have a huge implication on many industries with their fuel costs seeing huge increases.

How do diesel prices in the UK compare to the rest of the world?

You’re probably well aware that we’re one of the most expensive countries in the world when it comes to the prices we pay at the pump when buying road fuels such as diesel and petrol. Something that many industries who will lose their access to the red diesel rebate in April 2022 will be contemplating.

As so, we thought we would take a look at just how expensive the UK is in comparison to other countries around the world based on the data provided by the globalpetrolprices.com website. All the data below was correct at the time of writing.

First of all, based on an average fuel price of £1.30 per litre for road diesel, that would make the UK the 163rd most expensive country in the world based on the diesel price at the pump. To put that into context, that’s 163 out of 166 countries, ahead of only; Israel, Sweden, Hong Kong where it’s even more expensive to buy diesel.

If we were lucky enough to be told by the fuel suppliers that they no longer planned to charge us for diesel, we’d still need to pay the fuel duty and VAT on the fuel. That means our “free” diesel fuel would still incur a fee of 69.54 ppl which would need to be paid by either the vehicle owner or the fuel suppliers. Our “free” diesel would still only place us at number 77 in the list, which is a measure of how highly taxed we are as a country.

Of course, with the rebate on red diesel you may be wondering where in the table this would place us  just based on the fuel duty rate and VAT prices. For those purchasing over 2,301 litres, they can expect to pay a minimum of 13.37 ppl which would move the UK up to 5th in the list and for those purchasing less than 2,300 litres, that would then take us up even further to; number 5 again surprisingly, based on a fuel price of only 11.697 ppl with only the fuel duty and VAT applied to the price.

Of course in all fairness, the fuel prices around the world vary so much based on a number of factors that aren’t accurately reflected in these tables. As a general rule, the richer countries very often have higher fuel prices than the poorer countries and those countries which produce and export oil.

All the countries on the list who rely on imported petroleum, have access to the same prices on the international markets. The differences in prices across the various countries are due to the different tax rates they impose along with subsidies they place on the fuels sold in those countries including diesel. As a result, the retail prices of diesel around the world is vary considerably.