Companies could be facing additional fuel expenses of between £100,000 and £400,000 per year
- Operating costs are expected to rise by 15%
- Businesses will be facing additional fuel expenses of between £100,000 and £400,000 per year
- The change to white diesel will increase prices by 46.81 pence per litre used
Fix Radio discuss how the changes to the red diesel ban will impact UK’s tradespeople
In order to bring all greenhouse gas emissions to net zero by 2050, the UK government announced last year it would reduce the list of businesses entitled to use red diesel from April 2022. This has been a source of concern among UK businesses and, in particular sectors that heavily rely on machinery such as construction, due to the expenses that investing on energy efficient alternatives will incur. Operating costs are expected to rise by around 15%, with companies facing additional fuel expenses of between £100,000 and £400,000 per year – according to research commissioned by RMAS (Resource Management Association Scotland). CPS Fuels found the switch from red to white diesel alone will bring an additional expense of 46.81 pence per litre used, resulting in five times as much duty rate as before.
This comes at a time where costs in the construction sector are at an all-time high, with sky rocketing materials prices expected to carry on growing throughout 2022 for energy intensive materials such as cement (by 1.5%) as well as concrete prices (by 1.9%) – according to Linesight’s latest quarterly report. While aiding the transition to sustainable forms of fuel is key in promoting a greener policy, Fix Radio also highlights the importance of understanding how this will impact certain sectors within the trade.