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Fuel Duty: Tax on Fuel in the UK

Buying petrol, diesel, or other fuels used for heating or vehicles is a daily occurrence for many. Check the list to see how the price of common fuels include the use of Fuel Duty in the United Kingdom.

FUEL DUTY UK: The tax on fuel often gets called hydrocarbon oil duty or fuel duty.

Either way, the fuel tax gets levied on most fuels used in motor vehicles in the United Kingdom.

There are some exceptions. They include some bus services, farm vehicles, and aviation. The operators will pay reduced fuel duty tax or no tax on fuel whatsoever.

The standard rate of 20% VAT is also payable on most fuels. Domestic heating fuel rates use the reduced VAT rate of 5%.

The different rates of VAT duties that relate to fuel would depend on what type you buy. Different rates that apply to other fuel types are also dependent on how they get used.

You must not use ‘rebated oils’ in a vehicle on public roads and highways. The penalties for doing so can result in a fine and having the vehicle confiscated. Rebated oils include power sources such as red diesel and kerosene.

Note: You can report red diesel used on public roads online to the HM Revenue and Customs Fraud Hotline.


UK Fuel Duty Rates 2022

  • Aqua methanol: 7.90 pence per litre.
  • Aviation gasoline (Avgas): 36.29 pence per litre.
  • Aviation turbine fuel used for private pleasure flying: 57.95 pence per litre
  • ‘Fuel oil’ burned in a furnace or used for heating: 9.78 pence per litre.
  • Liquefied petroleum gas (LPG): 28.88 pence per kg.
  • Natural gas used as fuel in vehicles (e.g. biogas): 22.57 pence per kg.
  • Petrol, diesel (heavy oil), biodiesel, bioethanol, aviation turbine fuel: 52.95 pence per litre.
  • Road fuel natural gas (including biogas): 24.70 pence per litre.

Warning: HM Revenue and Customs have the power to do spot checks on vehicles at public events. Many diesel owners use their vehicles for the transportation of animals. This includes activities such as Fox Hunting meets, Show Jumping events, and Point-to-Points.


ALSO IN THIS SECTION

Tax on Shopping: How tax duties on shopping and services differ on common products we use.
Tax Free Shopping: How to enjoy a spell of tax free shopping in the United Kingdom.
Tax on Alcohol and Tobacco: Current duty rates for two of the most popular social activities.
VAT on Mobility Aids: A list of qualifying products for the reduced rate of Value Added Tax.


HMRC Fuel Duty Rates in the United Kingdom