HM Treasury Statement: Fuel Duty Increase Postponed
The Chancellor of the Exchequer, Alistair Darling MP, today
(15 July) announced that he is postponing the 2 pence per litre increase in fuel duty that was expected to take place on 1 October 2008. As a result of this decision, main road fuel duty rates will remain at 50.35 pence per litre after 1 October this year. This is 17 per cent lower in real terms than in 1999. Consequential, planned increases in road fuel gases, biofuel duty rates and rebated oils rates will also be postponed. Alistair Darling said: "The global credit crunch and sharp rises in world oil prices have pushed up prices at the pump. Today's decision will help motorists and businesses get through what is a difficult time for everyone." This measure is taken in response to sharp rises in world commodity prices, with the price of oil almost doubling over the past year to reach a real-terms record high of $146 a barrel recently. This has inevitably had significant knock-on effects on the price of road fuels, which the Government is committed to taking into account when considering decisions on fuel duties. Postponing the planned increase in fuel duty is also consistent with the Government's commitment to support the Bank of England in maintaining low inflation. Future rate decisions are a matter for the Budget.
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Police warn of Heating Oil Thefts
Police have issued warnings following a pattern of heating oil thefts in
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May 14 2008 (Bloomberg) - Former Federal Reserve Chairman Alan Greenspan said oil prices will keep rising. Crude oil rose to a record $126.98 a barrel in New York earlier in the week on concern that refiners may fail to meet demand for fuels such as diesel and heating oil.
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Crude Oil Prices
Increased volatility in financial markets, ongoing geopolitical tensions and now
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Market Talk
The market surged to near all-time highs Monday after OPEC oil exporters
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Budget Statement 2008
Fuel duty
The planned fuel duty increase of 2 pence per litre (ppl)
in April 2008 has been postponed until 1 October 2008 in order to respond to the
short-term pressures on businesses.
Main fuel road fuel duty rates will rise by 1.84ppl on 1
April 2009 (as announced at Budget 2007)and by 0.5ppl above inflation on 1 April
2010.
Rebated oils rates will also be frozen until 1 October
2008, and will then rise in proportion to main road fuel duties for the next two
years.
Road fuel gases differentials were previously announced
until 2008-09. The Budget announces that the duty differential will also be
maintained for Compressed Natural Gas (CNG) and reduced by 1ppl for Liquefied
Petroleum Gas (LPG) until 2010-11.
| Type of fuel |
Existing duty rate (pence) |
Duty rate from 1 October 2008 (pence) |
Increase (pence) |
| Ultra-low sulphur petrol/diesel |
50.35 per litre |
52.35 per litre |
2.00 per litre |
| Sulphur free petrol/diesel |
50.35 per litre |
52.35 per litre |
2.00 per litre |
| Biodiesel |
30.35 per litre |
32.35 per litre |
2.00 per litre |
| Biodiesel (for non-road use) |
3.13 per litre |
9.69 per litre |
6.56 per litre |
| Lpg (as road fuel) |
16.49 per kg |
20.77 per kg |
4.28 per kg |
| Natural gas (as road fuel) |
13.70 per kg |
16.6 per kg |
2.90 per kg |
| Rebated gas oil (red diesel)
|
9.69 per litre |
10.07 per litre |
0.38 per litre |
Source: FTA.
FTA comment:
FTA has welcomed the decision to freeze diesel duty and gas oil duty. However,
FTA believes that any duty increase should have been put off for at least a year
whilst the oil market remains so turbulent. A six month deferment will save
industry some £140 million. To put this into context, since January 2007 the
transport industry has seen its road fuel bill alone increase by £2.5 billion as
the bulk price of diesel has increased from 74p per litre to the current 92p per
litre
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FUEL FOR PRIVATE PLEASURE CRAFT -
CONSULTATION
At the end of July,
the Government issued a consultation document on its proposals to legislate for
the ending of the EU derogation that allows private pleasure craft to operate on
rebated fuel, ie gas oil (red diesel).
The consultation
includes an option for private pleasure craft to continue to run on gas oil, but
taxed at full duty rate. This would save the significant cost of providing
additional infrastructure to cater for road diesel as an additional product to
gas oil (commercial craft will still be able to run on rebated gas oil). The
FPS, together with the British Marine Federation, the Royal Yachting Association
and the Inland Waterways Association, made extensive representations to
Government to consider this option as the most pragmatic approach to an
unwelcome situation forced upon the UK by the EU.
The consultation
can be found on the HMRC website at:
www.hmrc.gov.uk/consultations.
Comments must be returned by 31 October 2007. The new legislation will come into
force on 1 November 2008.
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Heating Oil Thefts - Stay Alert!
We are seeing more
reports of theft from oil tanks every day - heating oil users are growing more
and more fearful of thieves who siphon oil from tanks and sell it on at a
discounted price.
The Norfolk Police
Force is investigating 36 reported cases of heating oil theft throughout the
county since 1 January 2008, furthering fears that the rising cost of oil is
causing increased incidents. Other incidents have occurred in rural areas across
the UK.
Now the oil price
is high, criminals have even more motivation to steal. With the cost of oil
topping $100 per barrel, a domestic tank full of heating oil can be worth up to
£700 or more.
Thieves are likely
to target houses in rural areas, where owners might not consider exterior
security.
We've come up with some hints to help our users protect themselves against oil
theft:
-
Screen the tank
with fencing, trellis or a hedge;
-
Cover any
external pipe work/fuel lines from the house to the tank;
-
Install motion
sensor security lighting;
-
Restrict easy
access to the tank – thieves will want to get as close as possible with a
vehicle, so make their life harder with a gate or fence;
-
Regularly check
the fuel level so you can easily spot if the level quickly drops - consider
installing a tank sensor - see our website for
more information or call our office.
-
Join a
neighbourhood watch scheme – telephone police if you see any suspicious
vehicles close to properties;
-
Check your oil
is covered under your household contents insurance.
Victims of oil
theft should report incidents to their local police force, and alert other home
heating oil users.
We hope this
information was useful.
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