Agricultural Fuel Oil in the UK: Powering British Farming

Agriculture is a vital pillar of the UK economy, feeding millions and maintaining the countryside’s landscapes. Central to the smooth operation of farms across the country is agricultural fuel oil, more commonly referred to in the UK as red diesel. As farming continues to evolve with technological advancements and changing climate demands, understanding the role, regulation, and future of agricultural fuel oil is crucial.

What Is Agricultural Fuel Oil?

In the UK, agricultural fuel oil refers to rebated gas oil, commonly known as red diesel. It is standard diesel with a red dye and chemical markers added to distinguish it from regular (white) road diesel. The dye makes it easily identifiable for enforcement purposes because red diesel is taxed at a much lower rate than regular diesel.

This low-tax diesel is intended solely for specific off-road uses, such as in agriculture, horticulture, forestry, and certain types of construction.

Uses in UK Agriculture

Farmers in the UK use red diesel to power a wide range of machinery and equipment, including:

• Tractors and harvesters

• Ploughs and seed drills

• Irrigation pumps

• Generators and grain dryers

• Vehicles used exclusively off-road

It is a lifeline for farms that depend on mechanisation to manage large areas of land, particularly in rural or remote locations.

Tax and Legal Regulations

Eligibility

Following rule changes in April 2022, the use of red diesel was restricted to certain sectors, with agriculture remaining one of the few exceptions. Farmers can continue using red diesel for:

• Farming, horticulture, forestry

• Maintaining land used for agricultural purposes

• Transporting produce between farms or to market (if within scope)

Use of red diesel for commercial haulage, construction (non-agricultural), and other industries is now prohibited. Illegal use—such as running a road vehicle on red diesel—can lead to fines, seizure of vehicles, or prosecution.

HMRC Oversight

Her Majesty’s Revenue and Customs (HMRC) conducts regular inspections and uses roadside checks and dip-testing of fuel tanks to enforce compliance.

Supply Chain and Storage

Agricultural fuel oil is typically supplied by specialist fuel distributors across the UK. Farmers usually purchase red diesel in bulk and store it in on-site fuel tanks that must meet environmental regulations related to leakage and bunding.

Notable suppliers in the UK include:

• Certas Energy

• Watson Fuels

• Crown Oil

• Rix Petroleum

These companies offer flexible delivery, price-lock options, and guidance on storage compliance.

Environmental Considerations

While red diesel is essential, it is also a fossil fuel with a high carbon footprint. As part of the UK’s net-zero strategy, the government is encouraging a gradual transition away from traditional diesel by promoting:

• HVO (Hydrotreated Vegetable Oil) – a cleaner-burning alternative

• Electric tractors and machinery

• Biofuels and hybrid systems

• Carbon audits and sustainable farming practices

Red diesel contributes to air pollution and greenhouse gas emissions. Reducing its use is part of broader climate goals, although the transition poses challenges for rural communities.

Future Outlook

The role of agricultural fuel oil is slowly evolving. While red diesel remains legal and essential for British farming, increasing pressure to reduce carbon emissions means that the long-term use of fossil fuels in agriculture is likely to decline. Government subsidies, innovation in electric and hydrogen-powered equipment, and improved logistics may shift the energy landscape on UK farms.

Conclusion

Agricultural fuel oil is the unsung engine of UK farming, keeping tractors moving, crops irrigated, and barns powered. Despite its benefits, rising environmental scrutiny and legislative changes suggest a gradual shift toward cleaner alternatives. For now, however, red diesel remains a practical and regulated fuel solution that keeps British agriculture running efficiently.