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Government Announces 10 Year Commitment on Fuel Duty for LPG

In his Autumn Statement the Chancellor of the Exchequer announced a 10 year commitment on fuel duty for LPG. This gives consumers the re-assurance that the government continues to support LPG and fuel duty will not be suddenly removed.

As has been the case for the last 10 years, the commitment is an undertaking that the fuel duty differential with petrol and diesel will not reduce by more than 1p per litre per year. In practice this has rarely been implemented and UKLPG will continue to work with the government to ensure that the price differential at the pumps continues to provide the annual savings for consumers to support a viable conversion industry and autogas sales.


Mike Chapman, Autogas Manager said “ For the first time ever we have long term support guaranteed from the government. The last 10 years has seen a strategy of a reducing fuel duty differential with petrol and diesel, but despite this there is currently the biggest ever savings for the LPG motorist. In 2003 when LPG averaged 38p per litre and was 50% of the price of petrol, a motorist undertaking 15000 miles a year at 38mpg on petrol would have saved £503 per year, whereas this year that same motorist would save £803.


We therefore look forward to the next 10 years with great excitement for many new LPG motorists”