Waste oil is one of the most tightly regulated materials handled by UK businesses. Whether you operate a garage, haulage depot, agricultural holding, or industrial site, storing waste oil incorrectly can result in significant fines, prosecution, and costly clean-up liability. This guide explains the legal framework for waste oil storage in the UK and the practical steps you must take to stay compliant.
What Is Waste Oil?
Waste oil is any petroleum-based or synthetic oil that has become unfit for its original purpose. This includes:
- Used engine oil and gearbox oil from vehicles and plant machinery
- Hydraulic oils no longer in service
- Transformer and insulating oils
- Industrial lubricants and cutting fluids
- Contaminated fuel oils
Waste oil is classified as a hazardous waste under the Hazardous Waste (England and Wales) Regulations 2005. This means it must be stored, transported, and disposed of in accordance with strict regulatory requirements.
The Legal Framework for Waste Oil Storage
Several pieces of legislation govern waste oil storage in the UK:
- The Environmental Permitting (England and Wales) Regulations 2016 — require sites storing or treating waste oil above certain thresholds to hold an environmental permit or register an exemption
- The Control of Pollution (Oil Storage) (England) Regulations 2001 — set specific secondary containment requirements for above-ground oil storage of 200 litres or more at industrial, commercial, and institutional sites
- The Water Resources Act 1991 — makes it a criminal offence to cause or knowingly permit polluting matter to enter controlled waters
- Hazardous Waste Regulations 2005 — require producers to register as hazardous waste producers if generating more than 500 kg per year and to use licensed carriers for disposal
Oil Storage Regulations: Secondary Containment Requirements
The Control of Pollution (Oil Storage) Regulations are the most practically significant for businesses. The key requirement is secondary containment — a bund or drip tray that will catch any leaks or spills before they reach the environment.
| Storage Volume | Bund Capacity Required | Additional Requirements |
|---|---|---|
| Up to 200 litres | Not legally required but recommended | Good practice: use a drip tray |
| 200 litres to 1,250 litres | 110% of the largest container | Bund must be impermeable, no drain valve |
| Over 1,250 litres (multiple containers) | 110% of largest, or 25% of total capacity (whichever is greater) | Regular inspection, records kept |
| IBC (Intermediate Bulk Container) | Dedicated IBC bund required | Rated spill pallet or bunded IBC cage |
Bunds must be constructed of impermeable materials, have no outlet or drain that could allow spilled oil to escape, and be capable of retaining the required volume. Regular visual inspections are required to check for cracks, integrity of joints, and accumulation of rainwater.
Environmental Permits and Exemptions
If you store waste oil on your premises before it is collected by a licensed waste carrier, you may need to register an exemption with the Environment Agency rather than obtain a full permit. The most commonly applicable exemption is T9 (recovery of waste oil by re-refining or use as fuel) or S2 (temporary storage of hazardous waste at the site where it is produced).
You must register exemptions online at the Environment Agency's portal. Operating without the correct permit or exemption is a criminal offence under the Environmental Permitting Regulations.
Choosing the Right Waste Oil Storage Tank
For most commercial and industrial users, a bunded waste oil tank is the most practical and legally compliant solution. These double-skinned tanks provide built-in secondary containment, eliminating the need to construct a separate concrete bund.
Key features to look for include:
- 110% bund capacity (compliant with oil storage regulations)
- UV-stable polyethylene construction (resistant to oil degradation)
- Locked fill point and lockable pump housing to prevent tampering
- High-level alarm or sight gauge for monitoring fill level
- Forklift pockets or integrated lifting points for repositioning
For sites storing oil in IBCs, a dedicated IBC spill pallet with adequate sump capacity is essential. Never store waste oil IBCs directly on bare concrete — a leak can reach surface water drainage within minutes.
Disposal: Using a Licensed Waste Carrier
Waste oil must be disposed of by a carrier registered with the Environment Agency as a licensed hazardous waste carrier. Always obtain a waste transfer note (or, for hazardous waste, a consignment note) and retain it for at least three years. Passing waste oil to an unlicensed collector is an offence, even if you are paid for the oil.
For smaller volumes, many local councils and civic amenity sites accept waste oil. Check your local authority's guidance for current arrangements.
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