Red Diesel Fuel Duty Changes For Fork Lift Trucks

Red Diesel fuel duty changes – switching to LPG will provide significant fuel savings.

Background to changes:
Users of diesel fork lift trucks are to see a significant rise in the price of red diesel fuel from 1st April 2022 due to legislative changes.
With the UK’s ambitions carbon reduction targets to achieve net zero by 2050, the entitlement to use red diesel and rebated biodiesel for fork lift trucks will be removed from April 2022. The change in rules is to discourage the use of polluting diesel powered machinery in favour of more carbon friendly sources such as LPG powered fork lift trucks. The legislative changes mean that users of diesel fork lift trucks will be taxed at the same rate as diesel powered road cars. Diesel sold at fuel stations is known as ‘white diesel’, red diesel is dyed to allow authorities to differentiate and identify inappropriate use.



What is changing:
The current fuel duty rate following the 5p cut announced on the 23rd of March 2022 is:

White diesel: 52.95 p/litre.
Rebated / red diesel: 10.18p/litre

After 12 months the fuel duty rates will revert to the old rate (prior to 23/3/22) of 57.95 p/litre for white diesel.

This means that from the April 2022 users of diesel fork lift trucks will be paying an additional 42.77 p/litre and after 12 months this will increase to 47.77 p/litre.

For customers with large fleets of fork lift trucks this is a substantial increase on top of already record high fuel prices.

What can businesses do to reduce fuel costs:

Fortunately businesses can significantly reduce fuel costs of their fork lift truck fleet and reduce their emissions without compromising on loss of power or utility by switching their fleet to LPG powered fork lift trucks.

As LPG is a clean burning fuel, therefore its use in fork lift trucks results in very little tail pipe emissions such as CO2, NOx and particulate matter. Due to the high calorific value of LPG it contains more energy per unit than other fuels such as diesel and fuel oils, therefore requiring less storage space for the same amount of energy. Unlike diesel LPG does not solidify, spill, gel, or stratify making it a more convenient and safer choice of fuel.

One of the biggest advantages in switching to LPG powered FLTs is the reduced fuel costs, The price per litre of LPG is far cheaper than diesel, generally in the region of 30-40p/litre. Businesses with a few FLTs are recommended to use propane (LPG) gas cylinders which can be changed over in under a minute. For users with larger fleets of fork lift trucks, a bulk LPG storage tank is installed free of costs by Birmingham Autogas with refillable cylinders installed on the FLT. The cylinders remain on the fork lift truck which is refuelled from the bulk tank filling facility.



Electric or LPG powered FLTs
Whilst both electric and LPG powered fork lift trucks are a better option to diesel. There are numerous benefits to LPG fork lifts over electric as shown below:
• LPG fork lift trucks are far less expensive than electric trucks.
• Cost of LPG is much cheaper than the equivalent cost of electricity consumption
• Expensive battery charging infrastructure not required
• No downtime in having to charge LPG powered FLTs can be refuelled within 1-2 minutes.
• Much lower maintenance costs also there is no requirement in having to change and dispose of batteries.
• LPG powered FLTs provide much better performance in all year round conditions unlike electric trucks that have reduced battery life in colder conditions (up to 50% reduced battery life).
• There is greater operational flexibility with LPG powered fork lift trucks they are compliant with stringent emission standards making them suitable for a variety of sensitive applications such as food and pharmaceutical manufacturing environments. LPG FLTs can also handle heavy loads required in steel, transport, logistic and warehousing making them the ideal choice. LPG is the ideal fuel for fork lift trucks making them suitable for indoor and outdoor use.


Contact Birmingham Autogas today for your LPG fork lift truck fuel supply.
Sales@birminghamautogas.co.uk
0121 326 7171