Pre-Budget Report freezes fuel duty
Fri 12 March 2004
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The Chancellor has announced that road fuel duties will not be raised in the coming financial year because of the high and volatile nature of world oil prices. As a result, there will be no introduction of a tax differential in favour of sulphur-free fuels as had been announced in the Spring Budget.
However, the Government used the PBR announcement to reiterate its commitment to prioritise climate change in the forthcoming EU and G8 presidencies
The Chancellor announced that a 20p duty differential for bioethanol will be introduced from the beginning of 2005, in line with the existing differential for biodiesel.
The PBR launched a consultation process to look at the possibility of introducing a renewable transport fuel obligation (RTFO) along the lines of the existing renewable electricity support framework. It would require a set amount of fuel sales to come from renewable sources.
Related Links
Pre-Budget Report - Protecting the Environment
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