New Guidance For Rebated Fuel

Check when rebated fuel can be used

As of 1 April 2022, rebated diesel (known as red diesel) and rebated biofuels are no longer allowed to be used as they were previously. You will only be able to use rebated fuel for specific purposes when using certain machines, vehicles, vessels and appliances.

If you are no longer able to use rebated fuel, and you cannot change to a cleaner alternative, you’ll need to use diesel or biofuel in which the full rate of fuel duty has been paid for.

The rebated fuels affected by these changes are:

  • Rebated diesel
  • Rebated Hydrotreated Vegetable Oil (HVO)
  • Rebated biodiesel and bioblend
  • Kerosene taxed at the rebated diesel rate
  • Fuel substitutes

When Can Rebated Fuel Be Used?

You will be able to use rebated fuel in vehicles, machines and appliances for accepted uses if you’re in any of the following sectors:

  • Agriculture
  • Horticulture
  • Fish farming
  • Forestry

And also for the following functions:

  • Vehicles used on railways
  • Electricity generation and heating for non-commercial premises, including schools
  • Registered community amateur sports clubs (CASCs), golf courses and driving ranges
  • Sailing, boating and marine transport
  • Travelling fairs and circuses
  • Other vehicles, including agricultural vehicles, special vehicles, unlicensed vehicles, mowing machines and vessels

There are more specific rules regarding fuel as per each sector and type of machine/vehicle/appliance. Please see more on the government guidance page.

Non-commercial Premises

You can use rebated fuel for electricity generation and heating for premises that are not used for commercial purposes, such as:

  • Domestic homes
  • Premises used to deliver central and local government functions or acts of public administration, for example, NHS hospitals, state schools, town halls, public libraries
  • Places of worship
  • Premises used by registered charities for their primary purpose of trading, for example, educational charities delivering education or training, museums and independent schools