These Regulations amend the Hydrocarbon Oil (Marking) Regulations 2002 (S.I. 2002/1773) (“the principal Regulations”) and the Hydrocarbon Oil (Designated Markers) Regulations 1996 (S.I. 1996/1251) (“the designated markers Regulations”). There are amendments concerning the requirement to add a new marker, n-butyl phenyl ether, to oil, bioblend and biodiesel as a condition of the rebate of fuel duty on these products and other amendments concerning fuel marking and colouring.
Regulation 1 provides for citation.
Regulation 2 provides for commencement. The Regulations come into force on 1st December 2023 except for regulations 5 and 6 which come into force on 18th January 2024.
Regulation 3 amends the designated markers Regulations to provide for the designation of a new marker, n-butyl phenyl ether, for the purposes of identifying marked oil that is not to be used other than for an excepted machine (as defined by section 27(1) of the Hydrocarbon Oil Duties Act 1979).
Regulations 4 to 8 amend the principal Regulations.
Regulation 5 amends the definitions to define certain dyes which form part of the colouring substance prescribed in regulation 3 of the principal Regulations using chemical names, rather than by reference to the Colour Index. The marker previously referred to as the common fiscal marker, N-Ethyl-N-[2-(1-isobutoxyethoxy)ethyl]-4-(phenylazo)aniline, is now referred to as “the general marker”. The definition of coumarin is amended to correct an error in the chemical name used, but the chemical referred to remains the same.
Regulation 6 amends the provision which prescribes the required combination of markers and colouring substance for oils, biodiesel and bioblend to include the stated quantity of the new marker, n-butyl phenyl ether. It halves the quantity of the general marker which is required and removes the upper limit on the allowed quantity. It changes the combination of dyes which are included in the colouring substance from a requirement for 4 kilograms of solvent red 24 per 1,000,000 litres oil to a requirement for 4 kilograms of red dye in total, referred to by the defined term “solvent red”. Of the 4 kilograms of red dye, at least 2 kilograms must be solvent red 24 (now referred to by its chemical name, 1-(2-methyl-4-(2-methylphenylazo)phenylazo)-2-naphthol). Any remainder of the 4 kilograms of dye must consist of one or more of four other specified red dyes, in any combination. As before, 0.4 kilograms of 1-[(2-methylphenyl)azo]-2-naphthol must also be added, which is now referred to by the defined term “solvent orange”.
Regulation 7 inserts a provision to the principal Regulations allowing the production of a composite solution for fuel marking by the addition of the markers to an oil, biodiesel or bioblend base in a greater proportion than is otherwise permitted, and after the point at which marking of fuel is otherwise allowed. It also inserts a requirement for markers to be evenly mixed into the oil, biodiesel or bioblend.
Regulation 8 amends regulation 15 of the principal Regulations so that, from commencement of the provision on 1st December 2023 until it ceases to have effect on 18th January 2024, it will not be contrary to regulation 15 to add the new marker to oil, biodiesel or bioblend. This allows, but does not require, n-butyl phenyl ether to be used during the period from 1st December 2023 until 18th January 2024, when regulation 6 comes into force.
The addition of n-butyl phenyl ether reflects Council Directive 95/60/EC of 27 November 1995 on fiscal marking of gas oils and kerosene (OJ L 291, 6.12.1995, p.46-47) and Commission Implementing Decision (EU) 2022/197 of 17 January 2022 establishing a common fiscal marker for gas oils and kerosene (OJ L 31, 14.2.2022, p.52-55).
A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.