HC Deb 19 July 2001 vol 372 c376W
27. Mr. Peter Duncan

To ask the Chancellor of the Exchequer what plans he has to change levels of taxation on vehicle fuel. [3350]

Mr. Boateng

Taxation on fuel is reviewed on a Budget-by-Budget basis. In making his judgment, my right hon. Friend the Chancellor of the Exchequer takes into account all relevant economic and social objectives as well as the UK's environmental commitments.

However, we have already announced that Budget 2002 will introduce a lower rate of excise duty for biodiesel, at 20 pence per litre below the prevailing rate for ultra-low sulphur diesel. In addition, we will provide duty reductions or exemptions for pilot projects covering the more environmentally friendly fuels, methanol, bioethanol and biogas and hydrogen.