Globally, economies are in a time of uncertainty. Now might be a good time to think about investing. Maybe you already have some investments and you are looking for a way to diversify your portfolio. Red diesel might be a good investment option.
If you have never heard of red diesel, it may sound like something dangerous and completely unsafe to have you in your home or car but it is quite the opposite. Red diesel, or gas oil, is a dyed fuel that can be used to heat your home as it is chemically similar to automotive diesel but is inexpensive to buy. Along with their purpose of heating homes, they can are also used to fuel “off-road” vehicles like tractors and other vehicles used for agriculture. It is illegal to fuel a vehicle that is driving on public roads, that is why the fuel is dyed red so it is easy to detect. If you are caught using it in your car, you could be charged for fuel tax evasion.
They are used to heat homes, so red diesel fuel can be bought anywhere homes are heated by oil. The heating oil vendors transport the oil, likely in red diesel drums, its designated location where it is pumped into a heating oil storage tanks that are used by oil furnaces in the home. Since most homes are heated with kerosene, a lot of homeowners use them the term “kerosene” and “gas oil” interchangeably but there are some stark differences. Heating oil is known to be the safest type of heat. It will not explode, will not get hot enough to catch on fire, and will not burn in a liquid state. The temperature needed to reach for the oil to vaporize and ignite is 140 degrees Fahrenheit. In comparison, kerosene burns cleaner because of its refining process, burns more efficiently, lasts longer, but it has a higher price point than that of heating oil. It also has a 100-degree Fahrenheit flash point, making it easier for it to ignite into a fire.
Heating oil is not only used to heat homes, but it is also used in off-road diesel engines like bulldozers, backhoes, cranes, bobcats, and diesel generators. Certain aviation fuels use it as well as carnivals and country fairs use them for generators.
A license or a special job to purchase gas oil is not needed, though it is commonly thought to have a license is needed. All that is needed is a signed RDCO form. Companies selling the red diesel are required to be registered with HRMC. Further, it is up to the dealer of the oil to make sure the fuel is used legitimately.
Hopefully, you feel more confident about your understanding of red diesel and how it can be a good investment. Industries like agriculture and construction depend on red diesel to power the tools that are used on a daily basis.