The Chancellor of the Exchequer today laid out new greener taxes in his pre-budget report.  The report set out the governments strategy to help tackle climate change.

 

For motorist, there will be an increase of fuel duty of 1.25 pence per litre (ppl) as of midnight tonight.  This rate is an increase in line with inflation.  There are no plans to re-introduce the fuel duty escalator.

 

 

 

There will also be a package of measures to encourage the development of the biofuels market and innovative types of biofuels.  The 20ppl duty on biofuels will remain unchanged.

 

As of midnight tonight, the rate of CNG (Compressed Natural Gas) will increase by 1.25ppl to keep it inline with road fuels.  There will be an increase of 2.5ppl in the price of LPG.

 

The government is also considering the case for an incentive in company car tax to support the take up of flex-fuel vehicle capable of using high-blend bioethanol E85.
 

As predicted, there will also be an increase in the rate of air passenger duty, effective of 01 February 2007 in recognition of the environmental cost of air travel.