Section 13: Fuel Duties: Further Changes Rates and Rebates
Summary
1.Section 13 provides for changes in rates of duty and rates of rebate on products charged to duty under the Hydrocarbon Oil Duties Act 1979 (HODA). On 1 October 2010 duty rates on the main road fuels are increased by 1 penny per litre (ppl), and effective rates of duty on non-road fuels are increased by the same proportion as main road fuels. The duty differentials for road fuel gases are maintained, the differential for road fuel gas other than natural gas having been reduced by the equivalent of 1 ppl on 1 April. On 1 January 2011 duty rates on the main road fuels are increased by 0.76 ppl, and effective rates of duty on non-road fuels are increased by the same proportion as main road fuels. The duty increases on road fuel gases maintain the differential with the main road fuels.
Details of the Section
2.Subsection (2) amends the rates of duty on unleaded petrol, light oil other than unleaded petrol or aviation gasoline, and heavy oil in HODA.
3.Subsection (3) amends the rate of duty on road fuel gases.
4.Subsections (4)-(6) amend the effective rate of duty on fuel oil, gas oil, light oil for use as furnace fuel and biodiesel for off-road use.
Background Note
5.In Budget 2009 the Government announced that the duty rates on main road fuels would be increased on 1 April from 2010 to 2013 by 1 ppl above indexation in each year; that the effective rates of duty for non-road fuels would be increased by the same percentage as road fuels; that the duty increases on natural gas would maintain the differential with the main road fuels; and that the differential for road fuel gas other than natural gas would be reduced by the equivalent of 1 penny per litre each year.
6.Budget 2010 announced that the 2010 increase would be implemented in stages in order to ease pressure on incomes at a time when other prices are rising and that main road fuel duties would increase by 1ppl on 1 October and by 0.76ppl on 1 January 2011, with consequential effects on rebated fuels and road fuel gases.
7.Duty on leaded petrol is increased with effect from 1 October 2010 by 1ppl and with effect from 1 January 2011 by 0.76ppl.