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This blog includes the following:
Fuel costs are often the bane of fleet owners’ life. That’s because crude oil prices are going up as a result of the global pandemic and driver shortages.
Road diesel, also known as white diesel and DERV, is a non-rebated fuel with government duty applied. It’s commonly used to power vehicles with a diesel engine, the most common being HGVs (heavy goods vehicles), cars and vans.
The cost of diesel fluctuates daily due to changes in global crude oil prices. The required quantity and location can also impact DERV prices, which means we cannot offer fixed DERV prices online.
We always aim to be the most competitive fuel supplier. As a bulk DERV supplier, our vast buying power allows us to provide competitive prices on all of our products. We also offer a free fuel management service to help our customers benefit from even bigger savings, as well as to provide complete peace of mind that your tank levels remain optimal.
Red diesel (gas oil) is a low-duty form of regular diesel that’s used in forestry, horticulture and agricultural vehicles and machinery. Due to a minimal amount of tax applied, red diesel is a much cheaper fuel than DERV but can only be used by eligible sectors and industries. You can find a complete list of eligible users here.
The government introduced this low duty to help fuel-reliant businesses reduce their outlays. Unlike white diesel, red diesel is specifically intended for off-road usage, such as in tractors, grain dryers and machinery.
A higher duty is applied to regular diesel fuel for vehicles that are used on public roads. Those used on private land, such as farming and forestry vehicles and machinery, along with other types of vehicles and machinery approved by HMRC, can use red diesel to carry out their business.
It’s easy to distinguish between red and white diesel due to the red dye that’s added to the fuel. This helps authorities check and test illegal use on public roads. The police and HMRC regularly carry out spot checks across the UK to test for the presence of red diesel in diesel engine vehicles. If found to illegally use red diesel, the vehicle owner could be liable for a large fine and the vehicle detained. You can learn more on this in our red diesel FAQ.
Many industries who were eligible to use red diesel in off-road equipment and machinery, such as construction, data centres and commercial businesses, lost their eligibility to use red diesel. This red diesel shake-up will unfortunately mean there are some business sectors that will no longer be able to take advantage of the reduced costs associated with red diesel. We have already seen many businesses and local authorities look past red diesel for alternative fuel choices such as HVO for their diesel vehicles and machinery.
Of course, the natural expectation for many businesses and local authorities will be to switch to white diesel, since red diesel is simply a dye marked rebated version of white diesel. So any vehicles or machinery that ran on red diesel will continue to work just as well when filled and operated with white diesel.
However, the change in red diesel eligibility provides the perfect opportunity for businesses to choose a clean-burning fuel with many environmental and logistical benefits.
Speedy Fuels can help your transition to alternative fuels. We can uplift the rebated fuel, clean your tank to remove any traces of red diesel and deliver HVO or DERV at competitive prices. We can even recycle your unusable fuel assets back into the market – call us on 0330 123 3773 today to find out more.
Speedy Fuels has a large buying power; we source our diesel in bulk and straight from the refinery, allowing us to pass on these savings to our customers. You will be assigned an account manager who has the knowledge and industry expertise to advise you on the best time to buy, helping you to avoid price fluctuations.
Businesses can also save on the price per litre by buying DERV (diesel oil for road vehicles) in bulk from us. We provide UK-wide diesel deliveries in quantities from 1,000 litres through to 36,000+ litres in one tanker.
Regardless of what product you’re buying, bulk purchases are a great way to make the biggest savings on the price per litre. Speedy Fuels also supplies a wide range of onsite storage tanks that are perfectly suited to store large amounts fuel, such as diesel, gas oil, HVO and any other products
Business owners can also utilise Fuel Cards, available from Speedy Fuels, which offer substantial savings by charging a flat rate rather than having to pay fluctuating pump prices.
You can also take advantage of our tank telemetry monitoring service. Our engineers can install sensors inside your tank to monitor your fuel usage and alert your account manager when it drops below a predetermined level.
Hydrotreated Vegetable Oil (HVO) is a paraffinic diesel fuel that is virtually identical to mineral diesel, making it a direct replacement. Users can switch to HVO without any costly engine retrofits or machine modifications and instantly reduce up to 90% of net CO2 emissions.
Businesses will also benefit from relying on a fuel with a greatly extended shelf-life as HVO is FAME and ester-free, significantly reducing the risk of contamination when in storage. Unlike diesel, HVO can also be used year-round, without having to replace stocks for winter-grade fuel.
No matter where you are in the UK, we can supply and deliver, DERV, red diesel and HVO fuel within 24-48 or sooner if you choose our emergency delivery option. To learn more, get in touch with our fuels experts today by calling us on 0330 123 3773.