Fuel Oil and Liquefied Petroleum Gas: VAT

(asked on 28th August 2026) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of reducing VAT on heating oil and liquefied petroleum gas for households not connected to the gas grid, in the context of the Government’s planned reduction in VAT on domestic electricity.


Answered by
James Murray Portrait
James Murray
Financial Secretary to the Treasury and Paymaster General
This question was answered on 7th September 2026

The Government has announced a cut in VAT on electricity bills to give millions of households breathing space on the cost of living. Around 29 million households in the UK are expected to benefit from this change.

The Government has also announced over £50 million for low-income families who heat their homes with oil to help tackle surging prices.

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