Unlikely that the price of red diesel will rise significantly during 2007

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The British Marine Federation believe it is unlikely that the price of red diesel will rise significantly during 2007. Although the derogation allowing private boaters to fill up with lower duty red diesel runs out on 1st January 2007, the BMF have reassured their members that nothing will change for months if not years.

The news comes in the light of a letter received by the BMF from Treasury Minister, John Healey MP. In it he confirms that there will be no immediate change as the Government will need time to implement the decision taken by the European Commission.

The process to implement the legislation will require an announcement in a Budget statement in Parliament followed by a Finance Act and possible secondary legislation. Prior to that there will need to be consultation with interested parties.

The Federation of Petroleum Suppliers have also announced that they will continue to supply red diesel to private boaters for the foreseeable future.

Both the BMF and the RYA have assured their members that they will press for the longest possible transitional arrangements. Although they stop short of giving a specific time line, the BMF believe that this transition period will allow boaters to continue using red diesel for at least another year.