§ Mr. ChaytorTo ask the Chancellor of the Exchequer if he will estimate the increase in revenue to the Exchequer were all users of red diesel to be charged at the duty rate charged on(a) standard diesel and (b) ultra low sulphur diesel. [148149]
§ Mr. TimmsRebated gas oil, also known as red diesel, is liable for duty at the rate of 3.13 pence per litre and is used in excepted vehicles and as a heating and industrial fuel. Assuming the current level of use, raising the rate of duty on gas oil to that applying to(a) standard diesel and (b) ultra low sulphur diesel would raise additional revenues of £3.5 billion and £3.3 billion respectively. In practice, the additional revenue would be significantly less than this because a fifteenfold increase in the duty rate would reduce the demand for rebated gas oil.