Changes to red diesel rules from 1 April 2022

On 1 April 2022 many who use red diesel (also known as rebated fuel) to power off-road vehicles and equipment will lose the entitlement and will have to move over to white diesel.

How is the law changing?

The current law is that red diesel can be used in any machine which is not a road vehicle. From 1 April 2022 the law will change so that rebated fuel use is limited to certain types of vehicles, machines, and appliances when the fuel is used for specific purposes only.

When can rebated fuel be used after 1 April 2022?


Permitted uses from 1 April 2022 will be:

  • Agriculture, horticulture, forestry, and fish farming
  • Rail transport
  • Fuel used for non-commercial purposes – electricity generation and heating
  • Community sports clubs and golf courses
  • Sailing, boating and marine transport
  • Travelling fairs and travelling circuses

Read on for our Q&A with the details of when and how you will be permitted to use red diesel from 1 April 2022.


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