Off-road diesel, which has long been vital for small and mid-sized construction firms, is now at the center of industry tension. With an October 1 deadline looming, contractors face mounting financial strain as cash flow tightens and professionals argue that the new measures fail to reflect on-the-ground realities.
Starting October 1, administrative and fiscal changes will complicate the use and management of non-road diesel (NRD) for thousands of construction workers. While officials insist this is not a direct tax, many industry voices see it as regulatory tightening. In practice, it is a “disguised financial burden” that adds another challenge for already pressured construction businesses.
A deadline dreaded by many craftsmen
Early rumors suggested a sharp rise in non-road diesel (NNG) prices this October. However, the real challenge is shrinking access to government aid schemes and a tightening regulatory framework. For many craftsmen, clarity remains elusive.
On July 8, 2024, a decree officially capped RNG aid for small construction companies at €20,000 per entity. Although designed to support businesses against soaring fuel costs, the program imposes conditions so strict that it effectively excludes many in practice.
Eligibility Criteria Under Criticism
To qualify for aid, companies must:
- Employ fewer than 15 workers.
- Operate independently (not as part of a larger group or network)
- Use only machinery compliant with European anti-pollution standards.
- Remain fully up to date with tax and social security contributions.
- Belong to one of the 13 construction sectors recognized by the administration.
These rules appear to benefit vulnerable businesses, but many independent craftsmen struggle to meet all the requirements.
“On paper, I qualify, but one outdated machine blocks me. Replacing my backhoe costs €55,000, which isn’t realistic. Come October 1, I’ll have no choice but to raise my quotes or cut back on projects,” explains Julien Lassalle, a small business owner in Narbonne employing three workers.
Aid that struggles to reach its target
Applications for RNG aid must be submitted online between March 31 and June 30, 2025. Small construction operators may face challenges with the digital process, as many lack the resources or familiarity with online administrative systems.
Additionally, companies must submit all 2024 non-road diesel invoices as a single, consolidated file with their application. This administrative demand may further limit smaller firms’ ability to access aid, as many already struggle with regulatory requirements.
A windfall that excludes a good number of professionals
The €20,000 ceiling on financial aid and the 15-employee limit effectively exclude several construction SMEs. This affects especially those who heavily depend on non-road diesel (NNG) to operate their machinery. This creates a gap in coverage, leaving mid-sized companies with significant fuel expenses unable to access meaningful relief.
| Characteristic | Detail |
|---|---|
| Amount of aid | 5.99 euro cents/litre |
| Aid ceiling | €20,000 per company |
| Target audience | Construction companies with fewer than 15 employees, not affiliated with a group |
| Filing period | March 31 to June 30, 2025 |
The French Building Federation (FFB) warns that current restrictive RNG aid criteria exclude many intermediate construction firms, which are most in need of support for the ecological transition. The FFB calls for broader eligibility to ensure that essential businesses can navigate new regulatory and financial realities.
“We’re facing a double-edged sword. Businesses that need support for ecological transition are being excluded,” warns the Grand Est regional union of the FFB. “With the October 1 deadline looming, professionals face not only regulatory pressure but also severe cash flow constraints a reflection of the sector’s increasingly tough environment.”
The spectre of a general switch to conventional diesel
A troubling trend is emerging across the construction sector: many tradespeople are switching from non-road diesel (RNG) to road diesel, which is easier to obtain but subject to far heavier taxation. For many small operators, paying a higher price seems safer than risking penalties for non-compliance with RNG regulations, which continue to evolve unpredictably.
Suppliers have already noted a marked decline in RNG orders since July 2024, a shift that coincided with the government’s move to simplify tax exemptions. With these exemptions now focused almost exclusively on farmers, foresters, and regulated professions in the primary sector, construction professionals face higher operational costs a direct policy impact that may weaken competitiveness and investment capacity.
A cry of alarm in the face of a poorly orchestrated energy transition
Despite commitments to carbon neutrality, many craftspeople argue that the current approach shifts the ecological transition burden onto them without providing proper support. They advocate for fair, gradual reforms adapted to practical realities in construction, so environmental goals become achievable instead of simply shifting responsibility.
The October 1 deadline has become a focal point for industry frustration, symbolizing deeper concerns that go well beyond the issue of non-road diesel. Over the coming months, mobilization within the sector is expected to intensify and may even extend to additional construction trades.
Many professionals argue that short-term financial aid is insufficient. The sector seeks clear, long-term reforms that strike a balance between environmental responsibility and operational and financial realities.
Future readiness
To avoid the real or perceived costs of bringing construction machinery into restricted Low Emission Zones (LEZs), customers are increasingly requesting that equipment firms retrofit machines with a Diesel Particulate Filter (DPF). These filters reduce diesel particulate matter (black soot) emitted from exhaust systems, helping machines operate more cleanly in sensitive urban environments.
“In recent years, we’ve seen a clear increase in requests to fit DPFs on machines used in urban development projects that don’t come with them as standard,” explains Kurt Deleu, Director of Regional Sales Support (Europe) at Volvo CE. “However, it’s important to clarify that this is not always a strict legal requirement for working in an LEZ.”
So, why is there a surge in demand if the law doesn’t always require it? According to Deleu, many Volvo CE customers are simply preparing for what’s ahead. “At present, DPFs are viewed as an extra safeguard to ensure compliance with expected LEZ standards. But as regulations continue to tighten, it’s highly likely this trend will only accelerate.”
FAQ’s
What are the October 1 non-road diesel regulations?
The October 1 regulations impose stricter compliance rules for non-road diesel in construction, increasing requirements and reducing access to aid.
Who will be most affected by the new diesel rules?
Small and mid-sized construction companies relying on non-road diesel will face greater costs and limited aid.
Does the new regulation apply to all construction businesses?
No. Only companies with fewer than 15 employees, compliant machinery, and in certain sectors are eligible for aid.
Is the October 1 change considered a new tax?
No. Officials refer to it as an administrative change, but many view it as an added financial burden.
What is the €20,000 cap on aid, and how does it work?
Each company can receive up to €20,000 in aid, excluding SMEs with higher fuel costs from receiving sufficient support.
Conclusion
The October 1 non-road diesel regulations mark a turning point for the construction industry. While designed to encourage carbon neutrality and cleaner practices, the measures present significant financial and administrative challenges especially for small and mid-sized firms that are already under strain. The €20,000 aid cap, 15-employee limit, and strict eligibility rules leave many SMEs without meaningful support, while shifting fuel strategies highlight the unintended consequences of the policy.
