VAT 9.3 per gallon 11.73 12.82 1.1 exc. VAT 9.3 Fuel oil per litre 2.00 2.18 0.2 exc. VAT 9.2 per gallon 102.51 111.97 11.1 inc. The continuing commitment to a 6 per cent increase for road fuels is part of the Government s policy to reduce emissions of greenhouse gases, and recognises the environmental and other costs attached to road use. Road traffic is the fastest growing source of carbon dioxide emissions which cause climate change.
Conventional diesel has a greater energy and carbon content relative to petrol.
The higher duty increase for diesel is partially to offset this advantage, and also reflects the fact that using diesel is worse than petrol for urban air quality. Similarly, the duty rate on superunleaded petrol has been increased by more than unleaded to reflect the adverse effects of benzene, a known carcinogen. The leaded rate has also been increased by more than unleaded to reflect the harmful emissions arising from leaded petrol. The preferential duty rate for ultra low sulphur diesel was introduced on 15 August last year at 1 pence less per litre than conventional diesel. This differential has now been increased to 2 pence per litre to further encourage manufacture and use of this cleaner fuel.