If you’re new to Gas oil and interested in learning a little more about it, we’ve put together this gas oil FAQ to answer many of your questions about this type of fuel. As well as this FAQ, we also have a much larger red diesel FAQ that may well answer many more of your questions.
In case you’re not aware, red diesel is another of the more popular names for gas oil. Hopefully our gas oil FAQ (and of course our red diesel FAQ) will help answer many of the questions you may have about it such as; Is it illegal to use on the road? Is it the same as regular diesel I buy at the pump? Can it be used all year round during the winter and the summer? And many other questions like these which we’ve answered for you.
As one of the UK’s leading gas oil experts, we’re here to help so if you have any further questions about gas oil (or red diesel) and cannot find them in either of our FAQs. Or of course, if you have questions about making use of it within your business or how to purchase it. By all means, give our gas oil experts a call today on 0330 123 1144.
Today, gas oil is a mainly used as a commercial fuel in many industries for the purpose of powering machinery, generators and for vehicles used off-road, including those used in the agricultural, rail transport and marine sectors to name but a few.
It was also more commonly used by many businesses for heat generation, although in recent years, many businesses have now switched over to using industrial heating oil for heat generation instead. It can also sometimes be found being used in some domestic settings for heat generation too, but for most domestic users kerosene is now the heating oil of choice.
The name gas oil is one of the oldest names for this type of diesel and is still very today. However, the name red diesel has surpassed it in recent years, to the point where many people new to this type of fuel have never known it to be called anything but red diesel. The name quickly caught on due to the use of the red dye fuel markers which began to be added back in 1961.
The addition of the red dye was designed to help the authorities distinguish it from regular road diesel designated for use on public roads. Beyond gas oil and red diesel, you may have also heard it referred to as; tractor diesel, 35-second burning oil and plant fuel to name but a few. But they are all referring back to gas oil meaning marked diesel fuel designated for off-road use.
In simple terms, yes gas oil and regular diesel (DERV) are virtually the same fuel, except gas oil is strictly prohibited and is only to be used in off-road vehicles. The reason for this is because gas oil carries a much lower tax rate than the regular diesel that you buy at the petrol station. This makes gas oil a much more cost-effective alternative, as it doesn’t carry the same levies on tax as DERV.
For instance, fuels designated for use on public roads have a flat rate fuel duty of 57.95 pence per litre added to the price of the fuel, where as fuels meant for off-road usage have a very generous discount applied lowering their fuel duty to a flat rate of only 11.14 pence per litre.
The other difference is in the amount of VAT applied to the overall cost of the two fuels. Road diesel, like all road fuels has the standard VAT rate of 20% applied to the cost of the fuel. Whereas sales of gas oil up to 2300 litres will only be liable for a 5% rate of VAT, with the full 20% VAT only being applicable for sales of gas oil over 2300 litres.
Gas oil contains a red dye that can be easily traced (hence the name red diesel) to help the police and DVSA identify illegal usage. Road diesel is not dyed, which is why it’s sometimes called white diesel.
If you’re found using red diesel in road vehicles, you could be subject to a hefty fine or prison sentence. You can learn more on the Gov.uk website
Gas oil and heating oil (also commonly known as heating oil, paraffin, kero and 28-second oil) are both commonly used in commercial boiler applications. However, industrial heating oil (IHO) is a much cheaper option as it’s low-sulphur and more efficient than gas oil.
Both fuels have almost the same calorific value, meaning you generate the same amount of energy when using IHO as you would with gas oil.
What’s more, no modifications are required to your system if you change from red diesel to IHO.
If you’re unsure about what vehicles and machinery can use gas oil, please get in touch on 0330 123 1144. We can advise you on how you can use the fuel legally and save you money on your fuel costs too.
Gas oil is produced through a refining process where crude oil is pumped out of the ground to produce a thick, black liquid that’s known as petroleum.
Through the process of distillation, crude oil transforms into a variety of fuels, depending on the way it’s distilled.
Some of the more popular uses for gas oil include:
For a more information, visit the HMRC website for more advice on using red diesel in vehicles.
Environmental legislation has necessitated cleaner fuels with less harmful emissions which have meant the British Standard for Gas Oil has had to change the specification to adhere.
Sulphur has been recognised as one of the most hazardous components in gas oil but was historically needed as a lubricant within the fuel.
This has led to a decrease in shelf life which means more regular fuel testing and analysis is needed to protect your assets and operations.
No, you don’t need a licence but you’ll need to sign an RDCO form.
What’s more, the company who you purchase gas oil off must be registered with HMRC. It’s their responsibility to ensure that the fuel is being used legally.
They have a legal duty to pass on details of their transactions to HMRC which can be then used by the Road Fuel Testing Units (RFTU) if they suspect incorrect usage.
For more information, visit HMRC website.
You must never mix gas oil with other petroleum products as it’s illegal and could breach HMRC regulations in relation to payment for excise duty.
But there is one exception: industrial heating oil.
Red diesel can be directly topped up with IHO without having to empty the tank first.
Gas oil has seasonal requirements that vary for both summer and winter use.
Winter grade gas oil can be used all year round as it’s more resistant to cold (-12°C CFPP min). The blending of the fuel is altered during the colder months to improve performance.
Summer grade gas oil is only suitable for use during the warmer months as it has limited resistance to the cold (-4°C CFPP). If you use summer grade fuel in winter, you’ll experience operative problems such as engines failing to start.
Marine gas oil is a fuel used in seagoing vessels. ‘Bunker’ refers to a vessel’s fuel tank, which is why it’s often called bunker fuel too. Oil in the marine industry varies hugely, but here are the most popular nicknames it receives:
Firstly, let’s define what the flashpoint actually means:
Need more information? You can find more information on our red diesel FAQ, or alternatively, get in touch with our knowledgeable fuel experts who can answer any other questions you may have about gas oil/red diesel.
If you have any questions about gas oil, or if you’re looking for a competitive gas oil quote, get in touch with our gas oil experts today on 0330 123 1144.
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