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Heavy Oil Duty

Volume 929: debated on Tuesday 29 March 1977

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Road fuel is not, of course, the only oil which is subject to duty. The duty on most other oil products, for example heavy fuel oil, reached its present level of 1p a gallon as far back as 1969. Its real value has fallen very substantially since then, and I propose to restore it by raising the duty to 2½p a gallon. The oils affected will be all those which at present bear the 1p rate. I have made one exception only—paraffin commonly used used for domestic heating, particularly by the less well-off and by pensioners. This paraffin will continue to carry only 1p duty as at present. The increase in duty on heavy oils will produce an estimated £150 million in a full year. Both the oil duty changes I have proposed will be brought into effect on oils cleared from 6 p.m. tonight.