Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of revising vehicle tax to reflect the lower emissions resulting from the adoption of E10 fuel.

E10 is the standard grade petrol in the UK. Fuel duty is levied on E10 at the same rate as other types of petrol and diesel. This is currently 52.95 pence per litre.

Vehicle Excise Duty (VED) is a tax on vehicle ownership sometimes referred to as a ‘vehicle tax’. Cars first registered since April 2017 already pay a first year VED rate based on their CO2 emissions, with the least polluting models paying £10 on first registration, whilst the most polluting pay over £2,300.

This is based on CO2 emissions as measured through laboratory tests and recorded on a vehicle’s type approval certificate ensuring a consistent approach is used for all new cars. Since 2020, the government has used the improved Worldwide harmonized Light vehicles Test Procedure (WLTP) standard for measuring CO2 emissions, which aims to reflect real world driving conditions.

All taxes are kept under review.