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Biodiesel

Volume 447: debated on Thursday 15 June 2006

To ask the Chancellor of the Exchequer what assessment he has made of the merits of changes to taxation on biodiesel. (77617)

Biodiesel attracts a favourable duty differential of 20 pence per litre less than that for the main road fuels. In line with the alternative fuels framework, we have guaranteed that this differential will continue until 2008-09. Changes to duty rates, including that for biodiesel, are made by the Chancellor in the light of a range of social, environmental and economic factors.