Explanatory note

This Order, which comes into force on 15th June 2026, makes amendments to the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) (Temporary Continuation of 2022 Order and Adjustments) Order 2026 (“2026 Order”) and the Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc.) Order 2022 (“2022 Order”) to extend the fuel duty freeze and make a temporary further reduction to the rebated rate for red diesel. The amendments make temporary adjustments to 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 (“the Oil Act”). The adjustments made by this Order 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 percent.

Article 2 amends the 2026 Order to provide for the continuation of the 2022 Order until the end of 31st December 2026. The 2022 Order provides for adjustments of liabilities to excise duty and rights of rebate in respect of excise duty in accordance with sections 1(2) and 2(3) of the Excise Duties (Surcharges or Rebates) Act 1979. Section 2(2) of that Act (which applies in respect of orders under section 1 - see section 2(1)) - provides that an order shall cease to be in force at the expiration of a period of one year from the date on which it takes effect, unless continued in force by a further order. The 2022 Order was continued in force by S.I. 2023/329, S.I. 2024/300 and S.I. 2025/228 before the latest continuation provision made by the 2026 Order.

Article 3 amends the 2022 Order, to adjust the right to rebate by an addition to the amount of rebate allowable in respect of duty charged on gas oil, kerosene to which section 13AA of the Oil Act applies, biodiesel and bioblend of 9.96% until the 2022 Order ceases to have effect on 31 December 2026. For ease of reference and comprehension of effect, the figure in column (D) of Table C in the 2022 Order has been amended to indicate the correct amount of excise duty payable after the adjustment is made.

A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/publications/amended-fuel-duty-rates-for-2026-to-2027.