2006 No. 1979
EXCISE

The Excise Duties (Surcharges or Rebates)(Hydrocarbon Oils etc.) Order 2006

Made
Laid before the House of Commons
Coming into force
The Treasury make the following Order in exercise of the powers conferred by sections 1(2) and 2(3) of the Excise Duties (Surcharges or Rebates) Act 19791:

Citation and commencement1.

(1)

This Order may be cited as the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) Order 2006.

(2)

It comes into force on 1st September 2006 and has effect in relation to products that are charged with duty under the Oil Act on or after that date.

Interpretation2.

In this Order—

(a)

expressions used in this Order and in section 27(1) (interpretation) of the Oil Act2 have the same meaning as in the Oil Act;

(b)

“fuel oil” has the same meaning as in section 11(2) of the Oil Act3;

(c)

“fuel substitutes duty” means the duty charged by section 6A(1) of the Oil Act4;

(d)

“hydrocarbon oil duty” means the duty charged by section 6(1) of the Oil Act5;

(e)

“kerosene” has the same meaning as in section 13AA(5) of the Oil Act6;

(f)

“the Oil Act” means the Hydrocarbon Oil Duties Act 19797;

(g)

“Table A” means the table set out in article 3;

(h)

“Table B” means the table set out in article 4.

Adjustments of liability to duty on hydrocarbon oil, biodiesel and bioethanol3.

(1)

The following are adjusted in accordance with Table A—

(a)

the liability to hydrocarbon oil duty in respect of the products listed in rows (a) to (h);

(b)

the liability to the duty charged on biodiesel by section 6AA(1) of the Oil Act8;

(c)

the liability to the duty charged on bioethanol by section 6AD(1) of the Oil Act9,

by the deduction from the amount payable of the percentages specified in column (C).

Table A

(A)

(B)

(C)

(D)

Product

Amount payable before adjustment (pence per litre)

Percentage deduction

Amount payable after adjustment

(pence per litre)

(a)

Ultra low sulphur petrol

48.35

2.58

47.10

(b)

Sulphur-free petrol

48.35

2.58

47.10

(c)

Light oil that is leaded petrol

57.68

2.56

56.20

(d)

Light oil that is unleaded petrol (other than ultra low sulphur petrol and sulphur-free petrol)

51.52

2.58

50.19

(e)

Aviation gasoline

28.84

2.56

28.10

(f)

Ultra low sulphur diesel

48.35

2.58

47.10

(g)

Sulphur –free diesel

48.35

2.58

47.10

(h)

Heavy oil (other than ultra low sulphur diesel and sulphur-free diesel)

54.68

2.57

53.27

(j)

Biodiesel

28.35

4.40

27.10

(k)

Bioethanol

28.35

4.40

27.10

(2)

The figures in columns (B) and (D) are only for ease of reference and comprehension of effect.

Adjustments of rights to rebate of duty on hydrocarbon oil4.

(1)

The following are adjusted in accordance with Table B—

(a)

the right to rebate allowed by section 11(1) (heavy oils not for road fuel use) of the Oil Act10 in respect of the products listed in rows (a) to (d);

(b)

the right to rebate allowed on kerosene by section 13AA(1) (kerosene not for road fuel use or heating) of the Oil Act11;

(c)

the right to rebate allowed on light oil by section 14(1) (light oil for use as furnace fuel) of the Oil Act12,

by the addition to the amount allowable of the percentage specified in column (C).

Table B

(A)

(B)

(C)

(D)

Product

Rebate allowable before adjustment (pence per litre)

Percentage addition

Rebate allowable after adjustment (pence per litre)

(a)

Fuel oil

47.39

2.63

48.64

(b)

Gas oil (other than ultra low sulphur diesel and sulphur-free diesel)

46.99

2.66

48.24

(c)

Ultra low sulphur diesel

40.66

3.07

41.91

(d)

Sulphur-free diesel

40.66

3.07

41.91

(e)

Kerosene

46.99

2.66

48.24

(f)

Light oil

50.39

2.48

51.64

(2)

The figures in columns (B) and (D) are only for ease of reference and comprehension of effect.

Adjustments of liability to fuel substitutes duty5.

(1)

This article applies where the rate of fuel substitutes duty for a product is prescribed by the Other Fuel Substitutes (Rates of Excise Duty etc.) Order 199513 by reference to the rate of hydrocarbon oil duty specified in the Oil Act for—

(a)

light oil other than ultra low sulphur petrol and sulphur-free petrol,

(b)

sulphur-free petrol,

(c)

sulphur-free diesel, or

(d)

aviation gasoline.

(2)

The liability to fuel substitutes duty in the case described by paragraph (1)(a) is decreased by making the like adjustment as that made by article 3 in the case of the product specified in row (c) (light oil that is leaded petrol) of Table A.

(3)

The liability to fuel substitutes duty in the cases described by paragraph (1)(b) and (c) is decreased by making the like adjustment as that made by article 3 in the case of the product specified in row (b) (sulphur-free petrol) of Table A.

(4)

The liability to fuel substitutes duty in the case described by paragraph (1)(d) is decreased by making the like adjustment as that made by article 3 in the case of the product specified in row (e) (aviation gasoline) of Table A.

Dave Watts
Frank Roy
Two of the Lords Commissioners of Her Majesty’s Treasury
(This note is not part of the Order)

This Order, which comes into force on 1st September 2006, adjusts the liabilities to excise duty (and, where applicable, the rights to rebate in respect of such duty) in respect of liquid fuels that are chargeable by virtue of the Hydrocarbon Oil Duties Act 1979 (c. 5) (“the Oil Act”). The adjustments made by this Order negate, temporarily, the effect of section 7 of the Finance Act 2006 (c. 25) (“the Finance Act”) in relation to those fuels. The adjustments are all in the form of a deduction from the amount payable (or an addition to the amount of rebate allowable) of a specified percentage not exceeding 10 per cent.

Adjustments to rebates are dealt with by article 4. Adjustments of liabilities to duty are dealt with by articles 3 and 5. For ease of reference and comprehension of effect, the figures in columns (B) and (D) of the Tables in this Order indicate the amounts payable (duty liability) or allowable (rebate) both before and after the adjustment is made.

Section 6 of the Finance Act amended the Oil Act so as to set the rates of duty and rebate applicable to fuels chargeable under the Oil Act. That section came into force on 19th July 2006. Section 7 of the Finance Act further amended the Oil Act so as to increase the effective rates of duty, with effect from 1st September 2006. The result of the adjustments made by this Order is that, while the rates of duty (and rebate) are as set by section 7 of the Finance Act, a person will be entitled to adjust the amount he is actually liable to pay (or allowed by way of rebate) by the amounts specified in this Order: he will be liable to pay the same amount as if section 7 of the Finance Act had not come into effect.

A full regulatory impact assessment has not been produced for this instrument, as it has no impact on the costs of business, charities or voluntary bodies.