What registered dealers in controlled oil mean for buyers and suppliers
HMRC guidance outlines the Registered Dealers in Controlled Oil (RDCO) scheme under Excise Notice 192. The notice describes who can sell and store rebated (controlled) oil, the conditions for use, and reporting requirements. This explainer translates the key points for non-specialists, explains terms, and highlights practical steps for buyers and sellers.
What is the RDCO scheme and what changed
The RDCO scheme sets rules for who can deal in controlled oil, including rebated marine fuels, and when certain activities must be reported to HM Revenue & Customs (HMRC). The latest updates clarify how to determine if a vessel is using fuel for a commercial purpose and add details on reporting suspicious use of rebated fuel. The notices are updated periodically, so the rules you must follow can change over time.
Key facts at a glance
- Controlled oilincludes rebated marine fuels and other oils subject to excise controls.
- RDCO roledesignates who can legally buy, store, or sell this oil under the scheme.
- Commercial use testguidance explains how to decide if a vessel's use is commercial.
- Suspicious useindicators exist and must be reported to HMRC if identified.
- Updatesrecent updates in 2025–2026 refine contact details and exclusions, so check the latest version.
Who is affected
The scheme primarily affects businesses that buy, sell, store, or transport rebated controlled oil. This includes suppliers of marine fuels and other stakeholders who must verify whether a vessel or operation falls under commercial use. Individuals or firms outside these activities are not typically bound by RDCO requirements unless they engage in dealings with controlled oil or reportable activities.
Practical next steps for readers
If you deal with rebated oil or marine fuels, review the latest Excise Notice 192 to confirm your responsibilities. Do the following: (1) verify whether your operation is within the RDCO scheme; (2) determine if a vessel use is commercial under the updated guidance; (3) establish procedures to identify and report any suspicious use of rebated fuel to HMRC; (4) keep contact details and links up to date for HMRC inquiries; (5) monitor updates to the guidance for any changes to exclusions or reporting rules.
Limits and questions
Official guidance comes from HMRC guidance pages. If a point is unclear, consult the latest version of Excise Notice 192 or seek professional tax advice. The notice frequently updates contact links and specific rules, so relying on an older version can lead to errors. This explainer uses the published HMRC guidance as of the latest update noted in the source.
Which sources did Setup in Bahrain review?
Setup in Bahrain reviewed the following source material before preparing this explanatory article.
The links remain visible so readers can inspect the evidence, compare dates and context, and confirm current requirements with the relevant authority.
- gov.uk — evidence source reviewed for this article.
Information and responsibility notice: This article is general information based on the cited material available when published. It is not legal, tax, immigration, medical, financial, banking, or investment advice; it does not create a professional-client relationship; and it is not a guarantee of outcome, availability, accuracy, or eligibility. Rules, schedules, prices, and third-party information can change. Confirm material decisions with the relevant authority and an appropriately qualified adviser before acting.