UK extends duty rate benefit for alternative road fuels to 2032

The UK Autumn Budget, delivered on October 30, announced that “the government will maintain the difference between alternative and main road fuel duty rates until 2032 to support the decarbonisation of the UK transport sector, subject to review in 2024.” Under this budget, duty paid on alternative fuels will remain 50% lower than diesel for the next 14 years.

“This is good news for Autogas,” said the UKLPG, the trade association for the LPG industry in the United Kingdom. According to the industry, this initiative will provide a major boost to the market, helping address high emissions from the heavy good vehicle (HGV) sector and contributing to UK’s carbon emissions reduction targets.

Government support for viable alternative fuel options for fleets is vital in supporting the transition from diesel. The maintenance of this differential provides certainty for those considering adopting alternative fuels and underpins the business case for doing so. The commitment is also significant in supporting the government’s Road to Zero strategy aim to reduce HGV greenhouse gas emissions by 15% by 2025.

LPG is the most widely available alternative fuel in the UK with over 1,400 refuelling sites, most of which are on petrol forecourts. Most petrol engines can be converted to LPG and there are currently around 27 million vehicles worldwide running on Autogas with over 10 million in Europe and more than 150,000 in the UK.

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21 November 2018