§ Next, I intend to stick to my commitment to raise road fuel duties by at least 5 per cent. on average in real terms. From 6 pm this evening, tax on petrol and diesel will rise by 3½p a litre. I also plan to increase the tax on super-unleaded petrol by a further 4p next May. That reflects its higher emission of pollutants such as benzene and the dangers to the Revenue of switching to super-unleaded from leaded petrol. Despite those increases, petrol prices in this country should remain lower than in any other major European country.
§ Last year I froze the duty on gas used in road vehicles, that is, liquid petroleum gas and compressed natural gas, pending further work on their impact on the environment. Studies since then have confirmed that those are relatively clean fuels. The Government would like to help to encourage further use of those fuels, and I propose to reduce the duty on them by 15 per cent.