HL Deb 16 March 2004 vol 659 cc33-4WA
Baroness Byford

asked Her Majesty's Government:

Further to the Written Answer by the Lord Davies of Oldham (WA 51) and the Economic Secretary to the Treasury (HC Deb, 1420W), how it was possible in 2002–03 for the duty income on biodiesel to be £1.3 million when that for unleaded petrol was £10.7 million. [HL1724]

Lord McIntosh of Haringey

Approximately 22 million litres of unleaded petrol were consumed in 2002–03 at which time the duty rate on unleaded petrol was 48.82 pence per litre. This raised £10.7 million for the Exchequer in 2002–03. Over the same period 5 million litres of biodiesel were consumed on which a duty rate of 25.82 pence per litre was levied. This raised £1.3 million for the Exchequer in 2002–03.

The Government introduced a separate rate of duty for biodiesel, at 20 pence per litre below the rate for ultra-low-sulphur petrol, in July 2002. Biodiesel duty receipts for 2002–03 represent sales from August 2002 to March 2003. Subsequent sales of biodiesel have increased substantially with current sales averaging around 2 million litres per month.

The Hydrocarbon Oils Bulletin referred to by Lord Davies of Oldham in his earlier Answer shows that the total duty receipts from all fuels, including ultra-low-sulphur petrol, were £22 billion in 2002–03.