The Government has announced it is their intention to phase out the use of Red Diesel in road transport from April 2022, this will impact many parts of the frozen food supply chain adding additional cost onto our industry. Refrigeration units will have to run on white diesel from this date. Currently the duty rate on White Diesel is £0.59 per litre vs. £0.11 per litre for Red Diesel, an increase of over 500%. The change to the use of Red Diesel is part of the measures that the Government is taking to meet their net zero target of greenhouse gas emissions by 2050.
A consultation is currently taking place for interested parties and as part of this the BFFF have been invited to take part in a round table meeting (On-Line) hosted by HM Treasury on 7th September from 14.00 to 15.30. We are able to have three participants at the meeting, if any member would like to take part then please contact Siobhan O’Callaghan registering your interest to take part. This is a great opportunity to get your concerns across to Government and the likely impact on your business of these proposed changes.
There will be other Trade Associations taking part, these will be, Airport Operators Association, Cold Chain Federation, Logistics UK and Rail Freight Group
The consultation will close on 1st October 2020.