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Excise Duties: Fuels

Volume 479: debated on Thursday 17 July 2008

I am postponing the 2p per litre increase in fuel duty that was planned to take place on 1 October 2008 to support motorists and businesses in the face of sharp rises in world oil prices.

This means that main road fuel duty rates will remain at 50.35p per litre after 1 October this year. The duty is 17 per cent. lower in real terms than in 1999.

Consequential increases in road fuel gases, biofuel duty rates and rebated oils rates will also be postponed.

Postponing the planned increase in fuel duty is consistent with the Government's commitment to support the Bank of England in maintaining low inflation.