Belly blow on red diesel outside EU
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by Karen Miles • Many international hauliers could find their profit margins slashed this year as the European Union looks set to disallow "red" diesel in belly tanks.
The possibility of the EU deciding to declare red diesel illegal would add to current restrictions within member states. Off-road diesel is already not allowed on Community roads.
Hauliers say the potential change would force them to pay thousands of pounds extra for their fuel each year: duty adds around 25p a litre.
Sources close to Brussels say it is a "possibility that the activity could be curtailed", because of the numbers of operators who illegally connect to their belly tank and use red diesel within the Community.
The dilemma of whether hauliers should escape paying duty to any country could also weigh the odds for change.
The issue is expected to come to a head this month when the EU is asked to decide on a more general change to the law on belly tanks (see box above). International haulier Ralph Davies says that if the change goes ahead the Government should reimburse the company for its investment in 20 belly tanks.
Managing director Ralph Davies says: "We've spent L20,000-£30,000 in installing this equipment and why should someone else be able to say we can't use it anymore?"
Cheltenham-based Davies estimates the company could also have to pay an additional £15,000 in fuel bills a year on its regular trips to Russia and Turkey.
And Alfreton-based Scotts of Belfast, which makes regular trips to Poland, says any change would add £22,500 to its yearly fuel bill. "It looks to me like it's foregone," says managing director Bryan Scott.