What Affects the Price of Red Diesel?
How much your order of red diesel or gas oil will cost you is affected by several factors, so the price you are quoted on any given day is liable to change from day-to-day.
These red diesel price factors include:
- The price of crude oil, which can be impacted by geopolitical events
- Overall demand – more people buy heating oil in winter, so that impacts supply and demand
- Your location – ordering in bulk will save on regular delivery costs
All these and more mean the best way to get the right price for the red diesel you want to order is to call up your supplier and ask for the current red diesel price.
Is Your Business Legally Allowed to Use Red Diesel?
Depending on the industry you operate in and your intended usage, you could be eligible to use red diesel. You can learn more about red diesel in our FAQ.
Gas oil is another name for red diesel , which is mainly used by those in the agriculture, horticulture and rail transport industries. It is also used to power backup generators in hospitals and other non-commercial buildings where an uninterrupted power supply is vital. Normal diesel is more expensive than red diesel as it is subject to tax.
Red diesel only has a small amount of tax applied to it. Roads are built and maintained by the tax that the government charges on regular diesel. However, as vehicles running on red diesel don’t use public roads, they don’t have to pay the tax.
If you want to save money, we suggest you check whether your business is in an industry that is eligible to use red diesel. HMRC provides detailed information regarding which vehicles are eligible to use red diesel. The red diesel price may be different from each supplier. Therefore it is a good idea to shop around to find the best price. However, it is also important to note that the lower the price, the longer you will have to wait for delivery.