Boats may continue to be able to use red diesel (From Boating Cornwall)

Boats may continue to be able to use red diesel

11:27am Thursday 13th September 2007

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THE Government has published a consultation on red diesel which holds out hope for the marine industry by potentially allowing red diesel to continue to be sold, although at a higher rate of duty - saving the significant cost of changing fuel infrastructure and tanks on board boats.

HM Revenue and Customs have opened their consultation, "Energy Products Directive - expiry of the derogation for private pleasure boats", on the new regime set to replace the current "reduced rate of duty" marine diesel used by pleasure craft.

Following representations by the British Marine Federation and the RYA, the Government has indicated that its preferred option is to continue to allow leisure boat users to use red diesel while paying the full rate of duty.

This would mean that suppliers could continue to use the current infrastructure and users would not have to change or add tanks on their boats.

The added costs of providing new equipment threatened the profitability of fuel providers and would dramatically reduce the availability of fuel to leisure boaters.

The consultation, which also includes other options, is open to all members of the public and will run until October 31.

Neil Northmore, Royal Yachting Association, told Boating Cornwall: "The options laid out in the consultation paper certainly do seem to focus on minimising the impact. We are pleased that both recreational boater's concerns and those of the marine industry have been heard and incorporated. It is evident that HM Revenue and Customs have worked hard to develop options that could work for all concerned."

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