27 May 2026

British Marine welcomes the Government’s decision to extend the 5p cut in fuel duty to the end of this year.  The 5p extension applies to both petrol and diesel, helping businesses and drivers alike in the face of rising fuel costs. 

British Marine also welcomes the fact the Government will further lower the duty that it applies to red diesel duty from 10.18p to 6.48p/litre till the end of this year, conscious this will be of some help to boaters using red diesel for domestic purposes and for marinas and boat yards that use red diesel for their onshore equipment.   This further duty reduction in red diesel is the lowest in over 20 years yet its price still remains around 50% higher than its pre-crisis level , triggered by the conflict in the Middle East.  

Fuel type	Current duty
Petrol	52.95p/l
Road diesel	52.95p/l
Red diesel (rebated)	6.48p/l

As members will know leisure boaters are only allowed to use the lower rebated red diesel fuel for domestic heating / onboard generator use, whereas onboard fuel for propulsion incurs the higher duty that is applied to diesel and petrol.  This is why marinas selling fuel to boaters are advised to be aware of these rules and avoid simply assuming a 40:60  (domestic: propulsion) split and instead ask their customers to provide accurate declarations on the split between propulsion and domestic use. 

For further guidance on HMRC rules that apply to Registered Dealers in Controlled Oil (RDCOs) please refer to our public affairs page here.