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LPG DUTY
Page 41
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The major factor in cost saving is the level of fuel duty. Adrian Meakin says: "One common misconception is that government could suddenly increase the duty on LPG to the point where the savings would disappear. This is simply not possible While we don't know the actual duty rates for LPG, petrol or diesel more than a year in advance, we do know what the differential will be between them, "In 2004 the government committed to a rolling threeyear contract maintaining this duty differential between LPG and diesel/petrol. The differential is being marginally reduced by a total of lp/lit over the next three years in line with the alternative fuels framework.
This reduction is being phased in by about 0.33p/lit per year over 2008-2011 and has no real effect on the savings achieved with our technology. In each annual budget since 2004. the third year has been added on. At the moment we know what the differential will be as far as 2011 and in the 2009 Budget it will be extended again as far as 2012.
"Currently, the duty on ultra-low sulphur diesel and unleaded petrol is 50.35p/lit. The duty on LPG is 8.25p/lit; a differential of 42,1p/lit. In October 2008 these will increase to 52.35p/lit and 10.36p/lit respectively, giving a differential of 41.99p/lit. In April 2009, the levels will be 54.19p/lit and 12.41 respectively, giving a differential of 41.78p/lit."