§ Mr. ChaytorTo ask the Chancellor of the Exchequer what estimate he has made of the annual savings to the(a) quarry, (b) aviation, (c) farming, (d) manufacturing and (e) other industries arising from the rebated rates of duty on red diesel. [154699]
§ Mr. TimmsData on payments of duty on rebated gas oil do not indicate the end-use; therefore no estimate has been made of the annual savings to different industries resulting from the rebated rates of duty on red diesel.
§ Mr. ChaytorTo ask the Chancellor of the Exchequer what estimate he has made of the annual savings to industry from using red diesel instead of ultra low sulphur diesel. [154700]
§ 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 the rate applying to Ultra Low Sulphur Diesel would raise additional duty revenues of around £3 billion. In practice the additional revenue would be significantly less than this because a fourteenfold increase in the duty rate would reduce the demand for rebated gas oil.