Written question asked by Lord Laird (Ulster Unionist Party), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Friday, 9 July 2010.

Fuel Prices

Question: To ask Her Majesty’s Government what is the level of (a) duty, and (b) VAT on aviation fuel.

Answer: Fuel duty rates on road fuels are currently 57.19p per litre. In mid June 2010 unleaded petrol was on average 117.9p per litre as detailed in the Department of Energy and Climate Change's latest quarterly energy prices publication of 24 June 2010. Excluding VAT and fuel duty, the current average price of petrol would be 43.15p per litre. VAT is levied at the standard rate on the base petrol price plus the fuel duty. It is not possible to state with certainty what the extra cost of a litre of petrol will be as a result of the proposed VAT increase as retail road fuel prices in January 2011 will be subject to prevailing market conditions. Aviation turbine fuel used in private pleasure flying in turbine powered aircraft is subject to duty at the same rate as road diesel at 57.19p per litre. Aviation gasoline used in piston powered aircraft is subject to duty at 38.35p per litre. VAT at 17.5 per cent is applicable to retail sales of road fuels and aviation fuel used for commercial flights within the UK and private pleasure flying. VAT at 20 per cent will be applicable from 4 January 2011 in the same instances.

Secondary information