§ Mr. Peter AinsworthTo ask the Chancellor of the Exchequer how tax relief attaching to diesel fuels applies in the case of fuels comprising both diesel and biodiesel. [15525]
§ Mr. Boateng[holding answer 16 November 2001]: There is no tax relief on diesel used as a road fuel. A blend of diesel and biodiesel used in one of the non road fuel purposes specified in schedule I to the Hydrocarbon Oil Duties Act 1979 would be charged at the rebated rate of 3.13p per litre.
Under the Green Fuel Challenge, the Government will, subject to EU agreement, introduce a new duty rate for biodiesel in Budget 2002, at 20p per litre below the rate then in force for ultra-low sulphur diesel. Provisions covering duty on blends of biodiesel and diesel will be reviewed in the light of this new duty rate.