Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of removing fuel duty paid on red diesel.
At Spring Statement 2022 in response to fuel prices reaching record levels, the government announced a temporary 12-month cut to the full rate of duty on petrol and diesel of 5p per litre and an equivalent percentage cut on the rates for rebated fuels. Overall, this is the largest cash-terms cut across all fuel duty rates at once, ever, and is only the second time in 20 years that main rates of petrol and diesel have been cut. This cut represents savings for households and businesses, including those that use red diesel, worth around £2.4 billion in 2022-23.
All taxes, including fuel duty, remain under review and any changes are considered and announced by the Chancellor.