Navigators & General joins call for extension to red diesel derogation
10 November 2006
Navigators & General, UK pleasure craft insurer and part of the Zurich group, is joining the campaign to urge the European Commission to allow the UK government to apply lower fuel duty for diesel used in private pleasure craft.

Under the EU Energy Products Directive 1994, private boats can use red diesel, which is specially coloured to distinguish it from ordinary road-use diesel. Under a UK exemption (known as a derogation), the red diesel comes with a reduced rate of excise duty when used for pleasure craft. This currently stands at 5.2 pence per litre compared with 47.1 pence per litre for road-use diesel.

The derogation is due to expire on 31 December 2006 and HM Treasury has now submitted its extension application to the European Commission.

Richard Coleman, head of Navigators & General said, ‘Navigators & General recognises that this change will have a huge and negative impact on the boating and yachting world. It will see prices increase overnight, encourage people to use less environmental, and more flammable, petrol engines, as well as forcing some UK boat owners into overseas ports, using overseas fuel. We have written to the European Commission to urge them to grant the UK Government an extension to the derogation, which would support not only our industry, but also the thousands of people who use diesel-engine boats.’

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