The waste oil directive requires member states to ensure the collection and correct management of waste oil and to take measures to give priority to the regeneration of waste oil above combustion. As a specific measure applying to waste oil, the waste oil directive takes precedence over the waste framework directive.
It is the view of the Government that the duty regime applicable to waste derived fuel oil from 1 November 2008 should have no adverse effects on the volume of waste oil collected, as correct management of hazardous waste is a legal requirement. Waste oil has a value and there will continue to be a demand for waste-derived fuel. A higher duty rate for waste-derived fuel could also encourage the provision of regeneration of waste oil in preference to combustion.
I have not held discussions on this issue with the Chancellor of the Exchequer, but officials in my Department are in regular contact with officials in HM Revenue and Customs on this issue.