Red Diesel ban threatens to further fuel cost of living crisis say Scots bosses

Moves to ban the use of lower-tax “red diesel” across a number of industries will worsen the cost-of-living crisis, according to bosses in Scotland’s waste-management sector.

The UK government is planning to ban companies in the waste sector and in industries including construction from using the subsidised fuel – which is dyed red to clearly identify it and mainly used off-road – from April.

The Resource Management Association Scotland (RMAS) has warned that the move will push up costs, which will ultimately affect consumers and could also impact on sustainability, and lead to increased criminal activity from unscrupulous operators.

A ban on the use of red diesel in equipment used by the waste-management industry will raise costs for consumers, experts have warned (file image). Picture: AFP via Getty Images.

The ban on red diesel in mobile, static and process plant and equipment is being promoted as a green policy to aid the transition to sustainable forms of fuel, but RMAS says the lack of any viable alternatives will leave most waste and resource-management companies reliant on standard diesel, which will significantly increase operating costs.

A poll of RMAS’s 72 members suggests that costs will rise by around 15 per cent with companies facing additional fuel expenses of between £100,000 and £400,000 per year.

The organisation is now calling for a re-think on the ban, urging ministers to delay it or provide additional support for the waste-management sector.

Brian Ritchie, chair of RMAS, said: “The ban on red diesel comes with good intentions but it’s ill-conceived with no suitable green fuel alternatives available at present. Some of the estimated 15 per cent cost rises facing our members will have to be passed down the line to customers, suppliers, and contractors. This will ultimately hit consumers, further contributing to the current cost-of-living crisis in the UK.”

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