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Renewable Fuels: Excise Duties

Question for Treasury

UIN 4484, tabled on 18 May 2022

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing a rebate on HVO fuels for the affordability of that fuel compared to diesel.

Answered on

27 May 2022

Hydrotreated vegetable oil (HVO) continues to be taxed at the same rate as diesel. As with all taxes, the Government keeps the tax treatment of HVO under review.

There are no plans at present to change treatment as the Government uses the Renewable Transport Fuel Obligation (RTFO) to incentivise the use of low carbon fuels and reduce emissions from fuel supplied for use in transport and non-road mobile machinery. HVO is eligible for Renewable Transport Fuel Certificates under the RTFO, and is eligible to receive twice the reward in certificates under this scheme where it is produced from waste.

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