Historically, leisure boaters in the UK have had permission to use red diesel, which is taxed at a lower rate than its roadside equivalent. Coloured with red dye to distinguish it from its more expensive cousin, red diesel is typically available for around 40p/litre – less than half the national average for diesel on the forecourt.
In recent years, our permission to use red diesel became subject not only to national approval, but also the EU's. That's because the EU has regulations in place to ensure a harmonisation of tax rates on fuels and energy products - and our permission to use red diesel rests on an exemption (or 'derogation') from the EU regulations.
The last such derogation ended on 31 December 2006. Beginning in 2004, Motor Boats Monthly campaigned to the Government and the EU to extend the derogation. In 2006, the UK Government agreed with our arguments and applied to the Commission to extend the derogation.
Unfortunately, on 7 December, the Commission turned down the request.
The Commission left it open to the UK Government to set a transitionary period and to clarify what fuel motorboaters should fill up with, and at what price. For the latest details, see the campaign blog.
Although the campaign wasn’t successful, you disagree that boaters deserve to pay low tax on their diesel. To read the arguments in favour, see the original MBM article on the subject.
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