LPG Users to be hit
Discussion
7.44 Liquefied petroleum gas (LPG) has a significant duty differential and benefited from
the wider fuel duty freeze in 2004. The Government intends to reduce the differential towards
a level more commensurate with its environmental benefits. Budget 2005 announces that the
duty differential for LPG will narrow against conventional road fuels by the equivalent of one
penny per litre each year until 2007-08. The duty increase in 2005-06 will take effect from 1
September. The current duty differential for natural gas against conventional road fuels will
be maintained for the next three years until the end of 2007-08, a continuation of the policy
announced at Budget 2004.
the wider fuel duty freeze in 2004. The Government intends to reduce the differential towards
a level more commensurate with its environmental benefits. Budget 2005 announces that the
duty differential for LPG will narrow against conventional road fuels by the equivalent of one
penny per litre each year until 2007-08. The duty increase in 2005-06 will take effect from 1
September. The current duty differential for natural gas against conventional road fuels will
be maintained for the next three years until the end of 2007-08, a continuation of the policy
announced at Budget 2004.
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