What factors affect the price of red diesel?
The price of red diesel in the UK is affected by a number of factors including:
Global oil prices
Red diesel is produced from crude oil which means that it is susceptible to global price fluctuations. Geopolitical factors can create an imbalance of supply and demand, increasing prices, while global stability or trade deals can ease oil prices.
Refining and distribution costs
The cost of refining and distributing red diesel affects the price of red diesel. A shortage of materials or closing refineries can increase the cost of red diesel production.
UK fuel duty and taxation
The duty paid on red diesel is low and does not change regularly, however, you should be aware that any changes to its duty will affect its price.
Seasonal demand
During the winter, and over the festive period, the demand for fuels increases which results in higher prices.
Location and order volume
The price you pay for red diesel is affected by the volume of fuel you require and the location of your site. Purchasing fuel in bulk can reduce the price you pay per litre.
Red diesel vs white diesel (DERV)
Red diesel and white diesel are chemically identical. The only difference between the fuels is that one fuel is marked red to differentiate it for tax purposes. White diesel, also known as standard diesel, is the most common form of diesel used within the UK and is subject to the full rate of fuel duty. Red diesel is a rebated fuel which can only be supplied to eligible users mentioned above.
View our complete diesel vs red diesel guide for more information.