Fuel duty on petrol and diesel will go up by 2.76p per litre in the current year whilst the duty on LPG will go up by only 2.685p per litre.
As regards the differential in duty we have with petrol and diesel, the government headline commitment is that this differential would not decrease by more than 1p per litre per year. However, rather than seeing this decrease, we are seeing the differential increase to our advantage:
- Year beginning 1/4/2009 –
Petrol / diesel increase 3.84p whereas LPG increase only 3.45p
- Year beginning 1/4/2010 –
Petrol / diesel increase 2.76p whereas LPG increase only 2.685p
- This means that the differential will be at its highest ever amount at 42.43p in January 2011
The Chancellor also announced all fuel duty would rise by 1p per litre in real terms in April 2014, ensuring the 5 year commitment on fuel duty is continued.
Fuel duty increases in the coming year are being phased in as follows:
With effect from 1/4/2010 -
Fuel duty on petrol will go up 1p per litre to 57.19 p
Fuel duty on LPG will go up 1.43p per litre to 15.265p
With effect from 1/10/2010 –
Fuel duty on petrol will go up 1p per litre to 58.19 p
Fuel duty on LPG will go up 0.71p per litre to 15.975p
With effect from 1/1/2011 -
Fuel duty on petrol will go up 0.76p per litre to 58.95p
Fuel duty on LPG will go up 0.545p per litre to 16.52p
Mike Chapman, Autogas Manager of UKLPG said "This is really good news for motorists thinking of converting to LPG, as motorists are assured of savings for 5 years, it makes a worthwhile investment, even in these difficult economic times"