UK LPG

The trade association for the LPG industry in the UK

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UKLPG Calls on the Chancellor to Give a Longer Term Commitment to LPG Autogas

The LPG autogas industry is calling on the Chancellor to encourage consumers to choose clean and greener transport fuels by supporting a long term commitment to the fuel duty differential between LPG, petrol and diesel.

In response to preparations for the 2011 Budget, UKLPG is calling on the Chancellor to acknowledge the role of LPG, as part of the transport fuel mix, and extend the commitment to the fuel duty regime beyond the term of Parliament to provide certainty in the market.

LPG autogas costs less than petrol or diesel at the pump and this difference in price is a result of the different rates of fuel duty charged on the different fuels. The duty differential is a proven policy measure that delivers emissions reductions with no direct impact on public spending.

The LPG autogas industry is worth over £150 million to the UK economy and employs over 900 people. It is a retrofitted solution providing immediate opportunities for consumers and fleet operators alike to reduce their emissions by converting to LPG. UKLPG has used its submission to HM Treasury, to highlight the case study of Germany, where in 2006 the government gave a fuel duty commitment until 2018 for LPG and this certainty transformed the market from a few tens of thousands to over a quarter of a million today.

Robert Shuttleworth, Chief Executive, UKPLG, said: “The forthcoming budget is a real opportunity for government to provide certainty in the market place, and based on the German example, to bolster clean alternatives in the UK energy mix.

He added, “LPG’s refueling infrastructure was rolled out without the need for Government subsidy, reflecting the commitment of the LPG industry to the UK market, unlike alternative fuels, such as electricity or hydrogen, both on which require significant Government investment. If alternatives to conventional fuels are not considered, we fear that opportunities to reduce emissions of pollutants, speedily and economically, could be wasted.”

The full press release is available in the Press Room.