Revenue and Customs Brief 4 (2015): introduction of a new rebated fuel marker from 1 April 2015
Published 19 March 2015
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Please read Excise Notice 179: motor and heating fuels - general information and accounting for excise duty and VAT.
Introduction
On 1 April 2015, the UK is introducing a new chemical marker for rebated fuel. Markers are used in off-road diesel (sometimes known as red diesel in the UK) and kerosene, primarily used as heating oil. The new marker will be used in addition to existing ones and will be added in minute quantities and should not be noticeable to users.
HM Revenue and Customs (HMRC) has been working with the oil industry and fuel suppliers for over a year to ensure a smooth introduction. Users of rebated fuel should not notice any disruptions to their supplies.
Who should read this Brief
This Brief should be read by:
- oil refiners
- registered remote marking businesses
- oil storage businesses
- manufacturers of engines, heating systems and other equipment
- manufacturers of vehicles and machinery using rebated fuel
- users of rebated fuel including the agricultural and construction industries
- the rail and haulage industry
- the maritime sector
- heating oil consumers
Background - new chemical marker for rebated fuel
The government announced in February 2014 the introduction of a new product for marking rebated fuels. This is a significant step forward in the battle against criminals who ‘launder’ rebated fuel and sell it on for road use at a profit. The new marker represents a significant improvement on the existing mix. The oil industry has started adding the new fuel marker ahead of 1 April 2015.
HMRC set up an Implementation Working Group shortly after the announcement. This includes representatives of the oil industry and those sectors that may be affected by the change. The Group has worked with HMRC to develop our implementation plans as well as producing and delivering information to their members.
Next steps - what action should be taken
Rebated fuel use is limited to specific circumstances and is primarily used in the agricultural and construction sectors and for domestic heating. It is marked with dye and chemical markers, to ensure use for any other purpose can be detected.
Producers and suppliers of rebated fuel must ensure that, from 1 April 2015, any supply of rebated fuel removed from warehouse for home use contains the new mix of markers as set out in legislation.
Consumers are unlikely to need to do anything. Off-road diesel will remain red and fuel containing the new mix of markers can be added to existing stocks of rebated fuel. Further information should be obtained from your suppliers.
Further information
New marker to tackle fuel fraud
Date issued 19 March 2015