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Excise Duties: Fuels

Treasury written question – answered on 3rd May 2011.

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Photo of Gordon Henderson Gordon Henderson Conservative, Sittingbourne and Sheppey

To ask the Chancellor of the Exchequer how he expects the fuel duty stabiliser introduced in the 2011 Budget will help stabilise petrol and diesel pump prices.

Photo of Neil Parish Neil Parish Conservative, Tiverton and Honiton

To ask the Chancellor of the Exchequer if he will establish a cross-departmental review of the tax incentives offered for biodiesel.

Photo of Justine Greening Justine Greening The Economic Secretary to the Treasury

The fair fuel stabiliser ensures that when oil prices are high, as now, fuel duty will increase by inflation only.

Biodiesel is supported through the Department for Transport-administered Renewable Transport Fuel Obligation (RTFO). Unlike the excise duty system the RTFO is able to distinguish the environmental sustainability of biodiesel supplies and therefore help to safeguard against deforestation and unsustainable impacts on food crop production.

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