How Will The End Of Red Diesel Affect My FLT Business?

If you operate a forklift business, you’ve almost certainly been relying on red diesel as your fuel due to its low rate of taxation.

However, change is now on the horizon, and from the beginning of April this year, most sectors including FLT operators are set to lose the entitlement to use rebated biodiesel and red diesel in order to help the government meet its targets on air quality and climate change. With that in mind, it’s easy to see that a diesel-powered FLT truck is going to get a lot more costly to operate.

Red Diesel – An Overview

There are no differences between red diesel and white diesel except the fact that red diesel contains a red dye and has a lower rate of taxation. Strict rules exist about when and how red diesel is used and, until now, it has been available for off-road machinery and vehicles like FLTs as a concession.

The difference in price between white and red diesel, however, is quite significant. White diesel’s fuel duty rate is 57.95p per litre. Red diesel, on the other hand, is only 11.14p per litre – quite a considerable saving!

The Changes From April 1st 2022

As of the beginning of April 2022, FLT operating business will no longer be eligible for tax relief on red diesel. That means they’ll be taxed from that date at the standard rate, resulting in duty costs going up by more than 5 times. The purpose of this change is to encourage a switch away from diesel to low-carbon alternatives and energy-efficient machinery and vehicles.

Preparing Your Business

In order to remain in compliance with April’s new legislation, forklift businesses are now being encouraged to use their existing stocks of red diesel before April 1st. All registered users may prove they’ve purchased no red diesel once this deadline has passed, and they must also prove they have no stockpiles laid by in advance.

Any vehicle that is found unlawfully using rebated fuel can be seized, therefore keeping receipts and invoices to prove you’ve paid the full rate of duty following this date is imperative.

Nevertheless, with the increase in costs that will be seen after April, it makes sense for FLT businesses to plan ahead. Finding alternative fuels is key for the smoothest possible transition and switching to an LPG forklift is the best option for your business.

Why Choose LPG Forklift Truck Gas?

Keeping your business productive while also making savings is essential, and LPG forklift gas is the ideal solution. Not only will it be cheaper to buy forklift truck gas bottles than diesel once the duty goes up, but you’ll find that they’re a cleaner choice too, producing far less particulate matter, nitrogen oxides, and carbon emissions.

As a result, your business will be able to comply with environmental legislation which is becoming increasingly stringent. Even better, it won’t leave diesel soot lying on your valuable produce – something that is especially important if you handle textiles, pharmaceuticals or food.

FLTs that use forklift truck gas cylinders also have an improved power-to-weight ratio when compared with diesel models, and their engines are more responsive and last longer. If your company has a large FLT fleet, you may have a dedicated station area for swapping over the gas cylinders.  Whether you’re running a large or smaller fleet of forklifts, you will find that LPG bottles are efficient, reliable and allow for speedy changing.

Looking For Forklift Gas Near Me?

If you’re looking for a reputable forklift gas bottle supplier, you need look no further than innergy. We can provide you with a reliable business response service, supplying both new and refill/exchange cylinders at unbeatable prices. When you choose us, you can also be confident of the best possible customer service.

We take the time to really get to know our customers and understand their business requirements, and since we don’t operate call centres you can be confident that you’ll always speak to a gas expert when you get in touch. To find out more and to get a quote, contact us today.