§ Ms PrimaroloTo ask the Chancellor of the Exchequer what types of oil fuel are subject to a reduced or rebated rate of excise duty; what are the rates on rebated fuel; what are the unrebated rates; and what are the most common uses for the rebated fuels.
§ Mr. Heathcoat-AmoryThere are two classes of oil: light oil and heavy oil.
The full, unrebated, rate of duty on light oil is 36.14p per litre. This is levied on leaded motor spirit.
These are two types of rebated light oil: unleaded motor spirit which is rebated to a rate of 31.32p per litre is used in cars, taxis, light goods vans, and motor cycles; and furnace fuel which is rebated to a rate of 1.66p per litre is burned by approved furnace operators.
The full, unrebated, rate of duty on heavy oil is 31.32p per litre. This is levied on diesel road fuel and kerosene when used as a road fuel.
There are four types of rebated heavy oil:
Kerosene which is fully rebated is used for heating and lighting in the domestic, industrial, and agricultural sectors, and as aviation turbine fuel to power jet aircraft;Gas oil which is rebated to a rate of 2.14p per litre is used as a heating fuel, as power for heavy industrial and marine diesel engines, and can be used instead of diesel road fuel in certain off road situations, for example, in agricultural or construction plant;Fuel oil which is rebated to a rate of 1.66p per litre is used mainly as a power source in electricity generation and in manufacturing industries;Other heavy oil which, by chemical analysis, falls outside the preceding categories is fully rebated and is used in grease making, road building, and as lubricating oil.