Fuel Oil and Liquefied Petroleum Gas: VAT

(asked on 12th October 2026) - View Source

Question to the HM Treasury:

To ask His Majesty's Government what plans they have, if any, to temporarily remove VAT on (1) liquefied petroleum gas, and (2) heating oil, for properties not connected to the electricity grid and therefore unable to benefit from the temporary zero rate of VAT on electricity during the winter months.


Answered by
Lord Pitt-Watson Portrait
Lord Pitt-Watson
Parliamentary Secretary (HM Treasury)
This question was answered on 26th October 2026

Domestic heating oil and Liquified Petroleum Gas (LPG) already benefit from a reduced VAT rate of five per cent, rather than the standard 20 per cent.

In addition, to help households manage higher energy costs, the Government is providing over £50 million of additional support for low-income households which rely on heating oil. This comes on top of wider support with energy costs, including action to remove £150 from bills in April and the extension of the Warm Home Discount to 6 million households.

The Government has taken a balanced approach, helping millions of households with their energy bills through the temporary VAT relief on domestic electricity, while providing additional targeted support.

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