PRESS RELEASE     

UK Petroleum Industry Association

                                                             24^th November 2008

Pre Budget Report November 2008- fuel duty increases

The Chancellor in his Pre Budget Report today announced that the postponed  fuel duty increase of 2p per litre on road fuels, originally scheduled for 1^st April 2008, will now be applied on and from 1^st December 2008, taking the duty to 52.35p per litre on petrol and diesel. Duty will rise by a further 1.84p per litre on 1^st April 2009.

Chris Hunt, Director General of UKPIA, commented “With the rapid fall in ex-refinery wholesale prices of petrol and diesel in recent weeks being reflected at the pumps, the duty increases announced today are not welcome news for hauliers or motorists, even if in the short term some of the overall impact will be offset by the temporary reduction in VAT. The result is that the UK will have the most heavily taxed fuel in the EU”.

The main changes affecting fuels and road transport are as follows:

Road Fuel duties

• Fuel duty on unleaded petrol and diesel will increase by 2 pence per litre on and from 1^st December 2008, by 1.84 pence per litre on 1^st April 2009, and by 0.5 pence per litre above indexation on 1^st April 2010.
• Rebated oils rates will also rise by the same percentage as main road fuel duties.
• The current duty differential of 20p per litre for road biofuels will cease from 2010 and thereafter be charged at the same duty rate as the main road fuels.

Ends

Enquiries to:     Nick Vandervell: Tel. 0207 269 7604

                      Chris Hunt : Tel. 020 7269 7601

Notes to editors:

1. UKPIA represents the oil refining and marketing companies operating in the UK, which also own approximately 2,152 of the UK's 9,271 service stations .
2. UKPIA members own and operate the nine crude processing oil refineries in the UK.
3. More information can be found on UKPIA's website: click here for Fuel Prices historic data and Briefing Paper – Understanding Pump Prices