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The European Commission has turned down the application of the UK and other Member States for a further extension of the red diesel derogation which allows red diesel to be supplied to private pleasure vessels. The Commission's response can be seen here. The Commission's reasons for rejecting the Members States' requests will now be reported to the Council.
The RYA and BMF produced very strong arguments for the retention of the derogation, and the UK Government applied for an extension. The decision means that the only diesel fuel that can be used for propulsion of pleasure vessels (as opposed to heating fuel) will be road diesel with its substantially higher rate of duty. It is to be hoped the UK Government will consult with boating interests over the timescale for using existing stocks of red diesel on which lower duty has been paid.
The additional cost for larger powerboats is likely to lead their owners either to abandon the sport or, if they can, to move their boating to continental Europe. Transitional arrangements may be agreed to give time for marinas and harbours serving recreational boaters to install additional facilities, or change from red to road diesel supply.
Nevertheless in more isolated parts of the country the end of the derogation will mean diesel fuel will have to be obtained from the nearest road garage, possibly miles from the harbour, and carried aboard in cans. It is hard to see any sensible advantage that will flow from the Commission's decision.