HC Deb 28 July 1997 vol 299 cc12-3W
Mr. Chidgey

To ask the Chancellor of the Exchequer how many litres of(a) unleaded and (b) four-star petrol were sold in each of the last five years; and how much he estimates the reduced rate of excise on unleaded petrol, relative to that of four-star petrol, cost the Exchequer over the same period. [10253]

Dawn Primarolo

The amount of(a) unleaded petrol and (b) four-star petrol released for consumption in the last five years was:

align="right">Million litres
Unleaded petrol Leaded petrol
1992–93 15,415 16,485
1993–94 16,928 14,154
1994–95 18,070 12,583
1995–96 19,177 10,843
1996–97 20,552 9,198

On the assumption that the unleaded share has not increased after 1992–93 in the absence of the duty differential, the cost to the Exchequer of the unleaded rate being less than the leaded rate would have been approximately £4.5 billion. This is an estimate because factors other than the duty differential would have affected the unleaded share.

Mr. Chidgey

To ask the Chancellor of the Exchequer what progress he has made in obtaining the necessary authorisation at EC level for reducing the duty on ultra-low-sulphur diesel. [10254]

Dawn Primarolo

The necessary EC derogation has now been obtained. A reduced rate of excise duty on ultra-low-sulphur diesel will be introduced as soon as possible after Royal Assent to the current Finance Bill.

Mr. Chidgey

To ask the Chancellor of the Exchequer what is the Government's policy on maintaining the percentage differential on the rate of excise between unleaded petrol and four-star petrol. [10250]

Dawn Primarolo

The Government remain committed to a tax incentive to discourage drivers from switching from unleaded to leaded petrol. The Chancellor took the view in his last Budget to leave the differential unchanged in cash terms.