Government Consultation on implementation of the Energy Products Directive

As previously announced, 1st November 2008 has been set as the date on which the present regime for rebated fuel oil for purposes of propulsion of private pleasure craft (red diesel) will cease. HM Revenue and Customs has issued a consultation paper on "ways of implementing the new regime which would both minimise the impact, and ensure that any additional compliance burden was as small as possible."

The consultation paper is available here (a pdf file). One of the options proposed is "to continue to use red diesel but pay the full rate of duty." Since red diesel is high suphur that would mean a duty increase of 600%, but the advantage would be continuity of supply at the waterside.