Average price of red diesel in the United Kingdom (UK) 2003-2017
What is red diesel?
Red diesel is the same fuel as regular or white diesel. The fuel is heavily rebated and only to be used for agricultural, construction, and forestry purposes. It powers off-road vehicles and machinery in these industries and is not legal for use in road vehicles. A red dye is added to distinguish it from regular diesel. Red diesel has a lower tax rate to allow the above-mentioned industries to operate at a profit.
Regular diesel prices
One can surmise how much the different tax rate matters when we look at regular diesel prices. The lowest average price for white diesel in the past few years was 101 pence per liter in February of 2016. In March 2019 it was 132 pence. Compared to the regional differences in white diesel price, the price difference between the red and white variants is significantly higher. For more information on the fossil fuel industry in the UK visit our topic page here.