The UK government has published a consultation on red diesel that holds out hope for Yacht and Motor boat owners by potentially allowing red diesel to continue to be sold through the existing infrastructure.

The fuel would be sold at a higher rate of duty, but it will still save us the cost of changing fuel tanks on board our boats and marina/harbour  owners installing new equipment.

The Government has indicated that its preferred option is to continue to allow leisure users to use red diesel while paying the full rate of duty.

The consultation, which also includes other options currently not preferred by the Government, is open to all members of the public and will run until October 31, 2007. Its online address is www.hmrc.gov.uk/consultations .