1.Section 179 amends the rates of duty and rates of rebate on products charged to duty under the Hydrocarbon Oil Duties Act 1979 (HODA). These changes come into effect on 1 April 2013. The rates of duty and rates of rebate are the same as those set out in section 19 of Finance Act 2011. That section came into effect at 6pm on 23 March 2011 and the rates set out in it represent the rates of duty currently being paid.
2.Subsection (2) substitutes new rates of duty in section 6(1A) of HODA for unleaded petrol, aviation gasoline, light oil other than unleaded petrol or aviation gasoline and heavy oil.
3.Subsection (3) substitutes new rates of duty in section 8(3) of HODA for road fuel gases.
4.Subsections (4) – (6) substitute new rebates in sections 11(1) (heavy oil), 14(1) (light oil) and 14A(2) (biodiesel) of HODA; this amends the effective rate of duty on fuel oil, gas oil, light oil for use as furnace fuel and biodiesel for off-road use.
5.Subsection (7) revokes secondary legislation that further negated the effect of increases in rates of duty in section 20 of the Finance Act 2011 from 1st January 2013.
6.In the Autumn Statement 2012 it was announced that in order to support motorists and businesses with the high cost of fuel, the fuel duty increases that were planned for 1 January 2013 would be cancelled.
7.Section 20 of the Finance Act 2011 increased the rates set out in section 19 of that Act with effect from 1 January 2012. That increase was negated until 1st August 2012 by the Excise Duties (Road Fuel Gas)(Reliefs)(No.2) Regulations 2011 (S.I. 2011/3064) in relation to road fuel gas and by the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) Order 2011 (S.I. 2011/2904) in relation to the other fuels.
8.The increases were further deferred by means of section 188 of the Finance Act 2012, which provided that the HODA has effect as if the amendments made by section 20 of the Finance Act 2011 had never been made for the period on or after the 1 August 2012 until 1 January 2013.
9.Following the Autumn Statement the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) Order 2012 (S.I. 2012/3055) and The Excise Duties (Road Fuel Gas) (Reliefs) Regulations 2012 (S.I. 2012/3056) negated the increases in duty provided by section 20 of the Finance Act 2011 with effect from 1 January 2013.
10.These changes now amend the rates of duty in HODA to reflect the effective current rates of duty so that the increases in duties provided by section 20 of the Finance Act 2011 will not become payable.