news

News Headlines

Budget 2010 - Fuel Duty

Road Fuels

Following the recent rises in petrol and diesel prices the Chancellor, Alistair Darling announced in his Budget Statement that the planned 3 pence per litre increase in duty from 1st April 2010 would instead be staggered. There will now be a progressive increase in duty over the next 9 months, equating to a 2.76 pence per litre rise by January 2011.

Fuel Duty Rates 2010/2011 (Pence per Litre) – Petrol and Diesel

From 1st Spt 2009 - 56.19

From 1st Apr 2010 - 57.19

From 1st Oct 2010 - 58.19

From 1st Jan 2011 - 58.95

In addition, the duty derogation of 20 pence per litre currently offered to refiners for the production of bio-fuels will cease as of 1st April 2010. Under the Renewable Transport Fuels Obligation (RTFO) all fuel suppliers are required to ensure that a specified percentage of the road fuels they supply are made up of renewable fuels. The target for 2010 – 2011 is 3.5%.

As bio fuels are more expensive to blend than fossil fuels the removal of the duty incentive on 30th March will increase production costs overnight. To account for these changes all suppliers will be increasing their prices by approximately 0.8 pence per litre from 1st April 2010.

Heating Oils

Heating Oils will rise in line with road fuels:

Fuel Duty Rates 2010/2011 (Pence per Litre) – Gas Oil

From 1st Spt 2009 - 10.80

From 1st Apr 2010 - 10.99

From 1st Oct 2010 - 11.18

From 1st Jan 2011 - 11.33

Kerosene will remain exempt from duty.



For further information please contact Neil Sinnott at ESPO Energy on 0116 294 4055 or n.sinnott@espo.org