Latest Fuel News

Company Car Tax

The Government announced it is considering the case for changing the structure of AMAPs to ‘align the tax and National Insurance treatment and to ensure that rates and thresholds are set at an appropriate level to promote environmentally friendly business travel’.

Following on from the announcement in last year’s budget of a reduction in the lower company car tax threshold of 15% from 140g/km to 135g/km from April 6, 2008, the Chancellor said today that the thresholds for 2009-10 percentage rate will be frozen at 2008-09 levels.
Income tax

Basic rate of income tax reduced by 2 pence from 22 pence from next April, creating a 20 pence basic rate and 40 pence higher rate.
Company car fuel

The fixed figure on which the company car fuel benefit charge is based will be maintained at £14,400 in 2007/2008.

The VAT fuel scale charge will increase in line with fuel pump prices from May 1, 2007.
Fuel duty

An increase in fuel duty rates of 2 pence per litre from October 1, 2007, a further 2 pence in 2008, and 1.84p on April 1, 2009.

For 2007-08 the duty for rebated oils will increase by 2 pence per litre, also from October 1.

Further support for Biofuel uptake including extending the 20 pence per litre biofuels duty differential to 2009-10. The duty differential for 2010-11 will be announced in 2008.

Road fuel gases: the differential for CNG and main road fuels will be maintained in 2009-10 and will be decreased for LPG by a further 1 pence per litre.
Fuel duties
Pence per litre (unless stated) Old duty rate Change New duty rate

Ultra-low sulphur petrol/diesel 48.35p +2p 50.35p

Sulphur-free petrol/diesel 48.35p + 2p 50.35p

Biodiesel 28.35p +2p 30.35p

Bioethanol 28.35p + 2p 30.35p

Liquefied petroleum gas used as road fuel 12.21p per kg + 4.28p per kg 16.49p per kg

Natural gas used as road fuel 10.81 per kg + 2.89p per kg 13.70p per kg

Rebated gas oil (red diesel) 7.69p + 2p 9.69p

Fuel Oil 7.29p + 2p 9.29p

All fuel duty rate changes will take effect from October 1, 2007

VED

the rate of VED for the most polluting cars (Band G) increased to £300 in 2007-08 and £400 in 2008-09 and for low carbon Band B cars reduced to £35 from £50 in 2007-08 with that rate then frozen for the subsequent two years

The rates for Band C-E, cars registered before 2001 and all LCVs by £5 in each of the next three years

The rate for Band A vehicles frozen at £0

The rate for Band F raised by £10 in 2007-08, then £5 in each of the subsequent two years

the VED rates for petrol and diesel cars will be aligned since the differential in nitrogen oxides and particulate matter emissions for news cars ‘is expected to fall to close to zero once Euro V and VI emission standards become mandatory’.

All changes to VED rates are effective from March 22.
Graduated vehicle excise duty (VED) for private vehicles (registered March 2001)
VED band CO2 emissions (g/km) Change Alternative fuel cars Petrol cars Diesel cars

A 100 and below – £0 £0 £0

B 101 to 120 -£15/-£5/-£15 £15 £35 £35

C 121 to 150 £5/£5/£5 £95 £115 £115

D 151 to 165 £5/£5/£5 £120 £140 £140

E 166 to 185 £5/£5/£5 £145 £165 £165

F 186 to 225 £10/£5/£5 £190 £205 £205

G* 226 and above £85/£90/£85 £285 £300 £300

*for new cars registered from March 23, 2006.

The Petrol Retailers Association (PRA) is calling on the Chancellor to cut duty on biofuels in next week’s Budget to encourage investment in the product and the necessary infrastructure to deliver it.

PRA Director, Ray Holloway said: “A cut in duty on biofuels would generate demand and help expand this nascent market. This must include a statement on sustainability, incorporating general Government support policies to assist producers’ import materials.

“The Government must also encourage the development of new European-wide standards for the renewable element of biofuels and all forms of fuel additive.”

Holloway added: “We would also like the Chancellor to provide tax benefits for small businesses investing in equipment to deliver biofuels to the UK’s network of fuel forecourts. The Government has already outlined plans to encourage the building of new plants for producers, so a further move would best be provided for via changes to Excise Duty payments.”

Gordon Brown will announce the Budget for 2007/08 next Wednesday, March 21st.

Research has shown that parking sensors on cars (the bleeping noise that lets you know how close you are to objects!!) are the most popular accessory according to company car drivers.

It even beat satellite navigation systems in all sectors of the research – which ranged from small run around cars to sports cars (11 sectors were researched in all).

This surprising finding however can be due to the fact that many company car drivers own their own mobile satellite navigational system which they can transfer between cars.

The fact that these parking sensors are so popular should come as a relief to fleet managers, mainly as the introduction of these sensors has shown a drop in scrapes, bumps and dents in company vehicles. It has been stated however that having these sensors fitted into a vehicle adds no more than £30.00 worth of value!

Other popular accessories highlighted by these findings were in-car entertainments (not surprisingly!) and leather seating was a very popular with 4×4 and prestige vehicles.

Total UK are withdrawing their “Tops” Loyalty Card scheme in May following a decline in the number of customers using it.

The company said that research had discovered that targeted promotions were more popular than long-term point-collecting schemes.

A spokesperson said: “By withdrawing the Tops card scheme, we will be able to provide customers with targeted promotions, which will be better aligned with their expectations and desires, both now and in the future.”

Customers will be able to collect points at Total service stations until April 9th and can redeem points until May 7th, 2007. The company is writing to all active card users to explain the withdrawal of the programme and how they can redeem their points.

Information will be available on leaflets in stores and on the following websites:- www.total.co.uk and www.topscard.com

Fuel Retailers have reported a large increase in demand for unleaded petrol as motorists shun the supermarkets in the wake of the contaminated fuel furore.

Independent sites in the south east have been selling as much as double their normal volumes of unleaded, with some rationing fuel to ensure they can meet demand.

Ely based Jonathan James, who runs a forecourt within a mile of a Tesco site, ran out of standard unleaded for five hours today (Monday), despite limiting his customers to £30 worth of fuel.

He said: “We’ve seen a massive increase in trade. We’ve been rationing fuel at two of our three sites since Friday morning and will continue to do so until we can get a handle on the situation.

“We’ve held our prices back until today, despite everyone around us putting up theirs. Although crude oil prices are going up, I felt it would be seen as profiteering.

“My major concern is how the supermarkets will react, because they won’t take this lying down. What will they do to try and regain the trust and the lost trade?”

Harvest Energy, which supplies fuel to Tesco, Morrisons and Asda, has said that unusually high levels of silicon were found in four storage tanks at the Vopak terminal in West Thurrock, Essex.

The company said that standard testing ensures that its petrol reaches the European and British specification BS EN 228 for unleaded fuel. However, this does not include a routine test for silicon, meaning its presence was not detected prior to sale. “We will now be testing for silicon as a matter of course,” a company spokesperson said.

Meanwhile, PRA director Ray Holloway has criticised Trading Standards for not acting more promptly. “Trading Standards stood back and disengaged for too long. I wonder if an independent forecourt operator would have been treated equally had their fuel tanks been suspected of dispensing contaminated fuel?,” he said.

He added: “The retail pump price will undoubtedly come under scrutiny as consumer confidence recovers, that’s certainly true for the supermarkets but less so for traditional forecourt businesses. The former sector have an interesting dilemma that may prove very testing if they are to find a short term solution; how can they use price as a weapon when some motorists consider cheaper petrol is the underlying cause of the fuel quality issue? I expect them to try price and a promotion. Independent forecourt owners should, however, think very carefully before cutting their margins and abandoning a price that will cover all their costs.”

Motorists are beginning to turn away from satellite navigation systems – not because they get stuck in a field or a river – but due to the fact that the voices which are used to give directions are found to be too annoying!!

A survey which was carried out by vansunited.co.uk spoke to 1000 commercial vehicle drivers, and found 25% of them do not use the systems because of the voices not the directions!

It did list that voices such as Sean Connery and Kylie Minogue would be voices that they would accept taking direction from!

For those of you who have not already been warned by your employer or colleagues, new penalties have come into force as of Tuesday 27th February for drivers who are caught using handheld mobile phones.

If caught, you will now receive 3 Penalty Points as well as a £60.00 fine.

However, those with hands free car kits are still not completely in the clear so extra caution must be taken – the same penalty will apply for drivers who are using hands free phones if the police think they do not have proper control of their vehicle!