§ The Earl of Mar and Kellie
asked Her Majesty's Government:
Following the impounding of cars and the prosecution of drivers in Llanelli, Dyfed, for using a mixture of cooking oil and methanol as fuel, what rate of duty should have been paid on this alternative non-fossil fuel. [HL5918]
§ Lord McIntosh of Haringey
Any substance, whether or not it is a mineral oil, is subject to excise duty where it is used as a road fuel. This duty is normally charged at the rate of the fuel for which that substance is substituting. Because cooking oil can only be used in some diesel-engined cars, it will normally be liable at the rate set for ultra-low sulphur diesel, which is 45.82p per litre. Some cooking oil may meet the specification for biodiesel for duty purposes. To support the growth of the biodiesel industry the Government introduced a reduced duty rate in this year's Budget for biodiesel used as a road fuel, which is 25.82p per litre.