There are special rules that allow farmers to use red diesel to help grit and clear snow during extreme cold snaps. The legislation allows users of agricultural tractors, light agricultural vehicles and agricultural material handlers to use red diesel in their vehicles when gritting public roads.

However, in any other circumstances it is illegal to use red diesel (also known as off-road diesel) on the open road. There are also similar rules for kerosene, primarily used as heating oil. Together these fuels are known as rebated fuel and are limited to specific circumstances primarily in the agricultural and construction sectors and for domestic heating. These fuels are marked with dye and chemical markers, to ensure use for any other purpose can be detected.

HMRC has been working with the oil industry and fuel suppliers to introduce a new marker that will make it much more difficult for fraudsters to ‘launder’ rebated fuel and sell it on for road use at a profit. From 1 April 2015, a new marker will be used in addition to existing ones. Producers and suppliers of rebated fuel must ensure that any supply of rebated fuel removed from warehouse for home use contains the new mix of markers as set out in the relevant legislation.