Fuel Duty

Treasury written question – answered on 10th June 2002.

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Photo of Mr Bill Tynan Mr Bill Tynan Labour, Hamilton South

To ask the Chancellor of the Exchequer what research his Department has carried out to ascertain whether fuel duty differential encourages people to buy more environmentally friendly cars.

Photo of John Healey John Healey The Economic Secretary to the Treasury

Fuel duty differentials have proved very successful in encouraging the introduction of cleaner fuels such as ultra-low sulphur petrol and diesel throughout the UK. In addition, favourable duty rates for liquefied petroleum gas (LPG) combined with purchase grants through the Government sponsored PowerShift programme have led to a substantial increase in the number of LPG vehicles from less than 6,000 in 1996 to around 65,000 now.

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