MBM has discovered that full duty on heavy oil, or red diesel, will be lowered to 52.35ppl from 56.69ppl
MBM has discovered that from 1 April, the Government intends to normalise the duty on all diesel sold in the UK to a standard rate of 52.35 pence per lire (ppl).
This means that instead of the frightening prospect of red diesel jumping from its rebated rate of 9.69ppl currently to a top rate of 56.69ppl from 1 November, red diesel duty will be lowered to a slightly less worrying 52.35ppl.
While this doesn’t solve the problem of sky-rocketing diesel prices from 1 November, it does make the news a little easier to swallow. It also means that boaters will be paying exactly the same duty on their fuel as road users.
“From 1 April, there will be a single rate of duty for all heavy oil, and that includes red diesel,” Tim Smith, from HMRC’s Transport Taxes Team, told MBM. “The higher rate (56.69ppl) was only really used to set duty rebates, so what we’re doing is rationalising duty rate structure.”
“This is being introduced as a facilitation measure for the oil industry. We were also conscious of the impact a top rate of 56.69ppl would have on boaters.”
Look out for the April issue of MBM (out 20 March) for more.