Budget news 2008

Fuel Duty

The fuel duty increases planned for the 1^st April  will now take place on 1^st October 2008.  

At this time duty on petrol / petrol will rise by 2p per litre to 52.35p per litre and LPG will rise by 2.135p per litre to 10.38p per litre.  

As previously announced, on 1^st April 2009 duty on petrol / diesel will rise by 1.84p per litre to 54.19p per litre and LPG by 2.03p per litre to 12.41p per litre  

The Chancellor announced that on 1^st April 2010 fuel duty rates will increase by .5p per litre plus inflation. As a result the specific duty rate will not be known until then and HMRC have yet to calculate the actual differential which will apply to LPG before inflation (this will be no more than 1p per litre).

Vehicle Excise Duty (VED)

Budget 2008 announces reform of the vehicle excise duty (VED) structure. From 2009, VED will be restructured with new bands, based on carbon dioxide. Specific changes include:  

•• six new VED bands from 2009-10 – including a new top band (band M) for the most polluting cars that emit more than 255g CO2 per km;

•• reducing the standard rate of VED, in 2009-10, for all new and existing cars that emit 150g of CO2 per km or less, and increasing the standard rate of VED on the most polluting cars to £425;

•• from 2010-11, extending the zero rate of VED, during the first year of ownership, to all new cars that emit 130g CO2 per km or less – the EU proposed target for average new car emissions in 2012;

•• holding the first-year rate for all new cars that emit between 131 and 160g CO2 per km equal to the standard rate in 2010-11;

•• introducing for the most polluting cars a first-year rate of £950 in 2010-11;

•• providing a £15 or £20 discount for alternatively fuelled cars in 2009-10, and £10 in 2010-11; and aligning the alternative fuel and standard rates of VED in 2011.  

This last clause is disappointing news for LPG as the VED bands do not recognize the reduced carbon emissions following conversion and we will be lobbying for recognition of the reduced carbon emissions of LPG

Mike Chapman

Autogas Manager

UKLPG

www.drivelpg.co.uk the independent consumer guide to LPG autogas in the UK

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