Farming Leader

The NFUS Scottish Farming Leader is a leading agricultural publication which is sent out to all our members every month.  It provides information on current agricultural issues and NFUS activity.  This includes environmental, legal and taxation issues, as well as sector information such as crops, crofting, dairy, livestock, LFA, pigs and poultry.  The cover story from the latest edition of the Scottish Farming Leader is below.

FUEL DUTY AND THE EMERGENCY BUDGET

• He has asked the Office for Budget Responsibility to undertake an assessment over the summer of the effect of oil price fluctuations on the public finances.   Informed by this assessment, the government will examine options for the design of a fair fuel stabiliser.
• He also announced that the government is considering the case for introducing a fuel duty discount in remote rural areas. This includes possible pilot schemes in Scotland.

NFU Scotland wrote to the chancellor before the budget on these issues. We are set to have a meeting with Treasury officials in July when we will be discussing the above and other issues.

RED DIESEL

From 1 January 2011all red diesel sold will contain no more than 10 milligrams of sulphur per kilogram of fuel i.e. it will be virtually ‘sulphur free’. Sulphur-free red diesel is needed to ensure the reliable operation of pollutant emissions control systems, which will be fitted to new off-road equipment from 2011 to meet EU emissions requirements. Without sulphur-free fuel these systems would suffer progressive and irreversible damage, which would ultimately bring the equipment to which they are fitted to a halt. The introduction of sulphur free-fuel will have a number of direct and indirect effects of which users will need to be aware. However, with proper handling, any problems are likely to be quite limited.

Biodiesel

At present UK fuel supply includes two 'diesel' grades i.e. normal road diesel and red diesel which is supplied for off-road equipment. Red diesel currently contains up to 1,000 milligrams of sulphur per kilogram, but road diesel is already sulphur free.   The oil industry has indicated that they expect to meet the sulphur-free red diesel requirement largely by supplying road diesel for use in off-road equipment. Duty rates applicable to red diesel are, however, not affected by the introduction of sulphur-free red diesel. Thus fuel suppliers will supply road diesel with a red excise marker dye added for off-road equipment use.

Because road diesel contains some biodiesel (up to 7%), much off-road red diesel is also likely to contain biodiesel by 1st January 2011. Biodiesel blends of up to 7% are compatible with existing off-road equipment engines provided good housekeeping arrangements have been adhered to when storing the fuel.

Fuel Storage

Because of these changes in fuel quality, increased care will be needed in the storage of red diesel where this contains biodiesel. The oxidation stability of this fuel will be poorer than that of current red diesel. Over time oxidation can precipitate solids with potential to block filters in fuel distribution systems or in off-road equipment fuel systems. To minimise the likelihood of this occurring, it is recommended that users take particular care to ensure a fuel turnover period of once every 6 months and, in any event, no longer than once every 12 months.

Red diesel containing biodiesel will also be more prone to bacterial contamination than current red diesel. Bacterial growth can also potentially result in blockage of fuel filters and increased corrosion. Prolonged use of contaminated fuel could result in damage to engines. Bacterial growth can be prevented by eliminating water from fuel storage tanks and conducting monthly checks that tanks remain free of water. Where a bacterial growth outbreak has occurred, this can be addressed either by emptying and cleaning the tanks, or by seeking specialist help to tackle the outbreak with biocide additives and filtering.

Red diesel containing biodiesel is a better solvent than current red diesel. As a result it may pick up deposits already in fuel storage and dispensing systems and in fuel tanks on off-road equipment. To prevent these deposits from blocking filters, a one-time replacement of storage tank and off-road equipment fuel filters, outside the regular service interval, after 2 to 3 tank throughputs of sulphur free gas oil, is recommended.

Fuel seals in sight gauges on older fuel storage tanks may be incompatible with sulphur-free gas oil, irrespective of whether it contains biodiesel, and may require replacing. Users should examine sight gauges following the switchover to sulphur free gas oil. If there are signs of leakage they will need a one-off replacement of these seals. If you are having fuel storage tanks serviced in advance of the introduction of sulphur free red diesel, it would be worthwhile getting fuel seals replaced as a precaution.

Compatibility of Off-Road Equipment with Sulphur Free Red Diesel

Modern off-road equipment should have no problems running on sulphur red diesel. Indeed the road diesel that fuel suppliers are likely to supply to meet the sulphur free gas oil requirement is produced to more demanding quality specifications than existing red diesel. Fuel seals and pipes in some older equipment may be incompatible with sulphur-free red diesel and require replacing. Users should examine joints, seals and pipes in the fuel systems of their machinery following the switchover to sulphur-free red diesel. If there are signs of leakage, seals and/or fuel pipes may need a one-off replacement. If you are having equipment serviced in advance of the introduction of sulphur free red diesel, it would be worthwhile getting fuel seals and pipes replaced as a precaution.