Don’t see red over diesel rebate changes

Posted on Monday 24 August 2020

As the UK government prepares to roll back the red diesel rebate from April 2022, affected industries will be looking for alternative solutions. Barry Naylor says hydrostatic could be the answer.

As part of its commitment to tackling climate change, and to encourage more of us to make the switch to electric vehicles, the UK Government is planning to scrap the long-standing rebate on red diesel for all but a few sectors from April 2022.

The result will be an estimated increased cost of around 47p per litre for diesel fuel. For businesses who have come to rely on this historic subsidy, this poses a difficult question. Do they continue to use their existing fleet and take the hit of the increased cost of diesel, or pay a premium to switch over to EVs?

As it stands, EVs are unable to meet all heavy applications, meaning they aren’t suitable for all customers. In addition, many vehicles within affected industries are needed for longer shifts where there isn’t always time to change or charge a battery. For these reasons, many of the industries that will be worst hit by the end of the rebate wouldn’t benefit from going electric at this time. The technology is catching up, but it isn’t there yet.

For these industries, the Linde 1401 hydrostatic offers a robust interim solution. It already delivers major savings on fuel compared to torque converter driven trucks by gaining traction in a much more fuel-efficient way. Once the rebate comes to an end, these cost savings will be even higher, helping businesses to get the most out of their diesel. The Linde hydrostatic is also incredibly accurate and controlled and only uses as much power as is required, making it ideal for a range of applications. It’s less likely to under- or over-shoot, requiring less adjustment when loading and unloading which also helps to keep fuel consumption at a minimum.

EVs are making waves in warehouses, but for many heavy lifting environments the technology right now is expensive and it might not be the right fit for everyone. If the end of the fuel rebate is going to impact your operations, the 1401 could well be the answer to reducing your fuel consumption and keeping costs down.

Barry Naylor, heavy trucks specialist, Linde Materials Handling

For more information, visit www.linde-mh.co.uk

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