Latest on red diesel situation

BMF & RYA have met with Customs this morning

On Thursday last week it was announced that UK leisure boaters were to finally lose their permission to use low-duty red diesel.

The European Commission rejected an application to extend a derogation allowing use of the fuel.

The derogation runs out on 1 January 2007.

For our initial story click here 

Today (Monday December 11) the British Marine Federation and Royal Yachting Association met with Revenue and Customs officials to discuss the announcement.

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The point of the meeting was to establish that Revenue and Customs understands the marine industry’s need for a lengthy transition period before the price of red diesel is changed.

If the Government imposes full road duty, the price could double to more than £1 per litre, but it is still not entirely clear what the final price will be.

BMF executive director Howard Pridding (pictured) told MBY after the meeting: “The price won’t go up on 1 January. The reality is there will be a period of time in which boaters will continue to benefit from the low duty rate.

“We came away from the meeting content that Customs understands the need for a lengthy transition period.

Mr Pridding was reluctant to put a timescale on matters but envisaged a period of at least six months before the change could be implemented by the Government alone.

There will also be a consultation phase before any action is taken.

He added: “There is great confusion out there and we need to calm some nerves.”


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