Explanatory note

This Order prescribes the rates of the excise duty charged on liquids (“chargeable liquids”) comprised in section 6A of the Hydrocarbon Oil Duties Act 1979 (c. 5) (“the Act”) which are for use as substitutes for mineral oil motor fuel, or as additives or extenders in motor fuel or substitute motor fuel.

Section 6A gives effect to the first sentence of paragraph 3 of article 2 of the Council Directive 92/81/EEC of 19th October 1992 on the harmonisation of the structures of excise duties on mineral oils (O.J. L316, 31.10.92, p.12). This Order is related to The Other Fuel Substitutes (Payment of Excise Duty etc.) Regulations 1995 No. 2717, which provide a framework for the payment of excise duty dealt with by this Order.

Article 3 provides that a chargeable liquid set aside or used as fuel for an engine shall be liable to excise duty at the same rate as applies to light oil unless the rate is determined in accordance with either article 4 or 5.

Article 4 provides for the rate of excise duty on any chargeable liquid which is set aside to be determined by an entry in a record that the liquid is suitable only as fuel for a diesel or an aircraft’s non-piston engine, or a leaded or unleaded petrol engine. That record is known as the fuel substitutes record and is governed by the above mentioned Regulations 1995/2717. If, however, the liquid is not entered in the record under any of those headings, it is liable to the rate applicable to light oil, unless it is entered in that record as specially produced as fuel for a piston-engined aircraft in which case it is liable at the rate of duty specified in section 6(3) of the Act. Article 4 also provides rates for chargeable liquids not set aside, but which are put to a chargeable use.

Article 5 makes similar provisions in respect of additives or extenders to fuel, except that any such additives and extenders which are not entered as suitable only for a engine fuelled by diesel oil or petrol, or not entered as multi-fuel additives or extenders, shall be liable to excise duty at the rate of duty applicable to unleaded petrol.

Article 6 provides that chargeable liquids which attract the heavy oil rate of duty specified in section 6(1) of the Act shall be treated thereafter as heavy hydrocarbon oil, and similarly any chargeable liquid which attracts the light oil rate (whether or not that rate attracts a rebate) shall be treated thereafter as light oil.