HISTORIC PRESS RELEASE : Government consults on future support for Road Fuel Gases [June 2003]

The press release issued by HM Treasury on 18 June 2003.

The Department for Transport and HM Treasure today jointly published a consultation document on road fuel gases. Transport Minister David Jamieson and the Economic Secretary to the Treasury John Healey invited stakeholders’ and users’ views on how Government can best ensure that future support for LPG and natural gas continues to reflect environmental and other policy objectives.

In Budget 2003, the Chancellor announced that the Government would consult on future support, with a view to announcing decisions on future duty rates and other forms of support in the 2003 Pre-Budget Report.  The 13 week consultation begins today.

Inviting views, David Jamieson said:

“We have come a long way with LPG. Due to Government support we have tens of thousands of LPG cars on the road and the fuel is now available right across the country.  Eight car and van manufacturers now produce LPG models as a showroom option, and conversions are available for many more cars.  There is increasing use of natural gas for heavy vehicles.  This represents major progress in the UK’s use of alternative fuelled vehicles.  However, it is important that Government support for new technologies is targeted to ensure the best environmental benefits and this is what the consultation aims to ensure.”

John Healey said:

“Tax has played a powerful part in encouraging more use of green fuels. We plan to build on this progress. In Budget 2001 we cut duty on road fuel gases and announced a freeze in real terms for three years.  Since then, the environmental performance of both road fuel gases and conventionally-fuelled vehicles has improved.  We now need to set out a clear strategy from 2004 which ensures that support for road fuel gases continues to reflect our environmental and other policy objectives.  We will listen carefully to others about the nature and design of these forms of support”.