Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what the evidential basis is for his fiscal policy on liquefied petroleum gas (LPG) cars; and if he will make an assessment of the potential merits of reviewing that policy in order to incentivise the use of LPG cars.

The government uses the tax system to encourage the purchase of cars with low carbon dioxide (CO₂) emissions. Vehicles powered by Liquid Petroleum Gas (LPG) benefit from a reduced rate of fuel duty in comparison to the main road fuel rate. Budget 2018 extended the current duty differential until 2032, subject to review in 2024.

The temporary fuel duty cut announced at Spring Statement 2022 reduced rates for LPG proportionately to the 5p reduction for petrol and diesel to maintain the relative differential.

From 1 March 2001, cars powered by LPG, including those converted following first registration, receive a £10 discount on their annual VED payment.