§ Jackie BallardTo ask the Chancellor of the Exchequer if he will list the factors behind his decision to raise diesel fuel duty at a higher rate than petrol duty; and if he will make a statement. [79542]
§ Ms HewittThe main factors behind the decision announced in the 1998 Budget to move to a fairer taxation of diesel relative to petrol are the higher energy and carbon contents of diesel, and the adverse affect that the use of diesel has on local air quality, caused by the high levels of particulates and nitrogen oxide emissions from diesel use.
However, following the 1999 Budget the duty rate on ultra low sulphur diesel is the same as unleaded petrol. Ultra low sulphur diesel is now over 40 per cent. of the diesel market and some industry sources predict that this will rise to 100 per cent. before the end of the year.