Green Clarke puts diesel duty up 3p
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by cm s news team ■ Hauliers already suffering a 15% rise in diesel prices since the summer will have to fork out an extra £1,839 a year after the Chancellor increased fuel duty by 3p a litre in the Budget.
But in a move to help hauliers using environmentally friendly vehicles, he promised operators using low-emission vehicles with pollution-reducing particulate traps a reduction of up to £500 in Vehicle Excise Duty from 1998.
Other VED rates for trucks remain frozen for the seventh year in succession.
Hauliers driving 38 tonne-trucks an average of 100,000 miles per year, will see their fuel bills rise to £37,660: those travelling 70,000 a year, will see a £1,287 increases in bills.
The Chancellor announced he is to reduce the duty on ultra-low sulphur diesel so that its price equals normal diesel once he can get European-wide agreement. Duty reductions, expected to be 1p per litre, could be in place in May 1997.
There is better news for those switching to natural gas trucks. He announced a 25% reduction in duty—equating to about 5.5p a litre—on top of a 15% reduction last year. Insurance costs rise slightly.
The Freight Transport Association welcomes the environmental measures but predicts further congestion following the axing of 110 road schemes.
• Sulphur levels in diesel were reduced dramatically with Euro-2 standards in October.
• No business rates increases for small businesses.
• 110 road schemes cut