Fuel duties rise

From midnight on 6 December 2006, the effective excise duty rates for road fuels will be increased by 1.25 pence per litre (ppl), in line with the inflationary increases announced at Budget 2006. Effective rates of duty for non-road fuels will also be increased by 1.25 ppl.

In order to maintain the current differentials with main road fuels, the effective duty rates for biodiesel and bioethanol will also be increased by 1.25 ppl. The effective duty rate for natural gas will increase by 1.81 p/kg (equivalent to 1.25ppl) to maintain the differential with main road fuels. The effective duty rate for liquefied petroleum gas will increase by 3.21p/kg (equivalent to 2.25ppl) to reduce the differential with main road fuels by the equivalent of 1ppl.

However, the Chancellor also confirmed that he would not be reintroducing "the fuel duty escalator and I have rejected a real terms increase in fuel duty." There were also measures to offer incentives to increase the use of biodiesel and other biofuels.

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