Explanatory note

These Regulations, which come into force on 1st September 2005, provide for a partial relief from the excise duty charged on road fuel gas. The relief is allowed only in respect of road fuel gas that is charged with duty on or after that date.

The result of the application of the relief (which is provided in the form of a remission of part of the duty that is chargeable) is that the amount a person is liable to pay in respect of excise duty on road fuel gas is reduced by the amounts specified in these Regulations: he will therefore be liable to pay 9 pence per kilogram.

The rates of duty charged on road fuel gas are prescribed by section 8(3) of the Hydrocarbon Oil Duties Act 1979 (c. 5) (“the Oil Act”). Section 4(6) of the Finance Act 2005 (c. 7) (“the Finance Act”) amended the rates prescribed by section 8(3) of the Oil Act. That section came into force on 7th April 2005. Section 5(5) of the Finance Act further amended section 8(3) of the Oil Act so as to increase the rates of duty, with effect from 1st September 2005. The result of the application of the relief is that a person will pay the same amount as if section 5(5) 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.