LPG tax limit fixed
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• A tax of 1 lip per gallon is to be applied to liquefied petroleum gas from July 3. This was announced in the Commons by the Minister of State for the Treasury. The proposal to tax LPG was first made in last year's Budget and the time-delay in announcing the amount has put a stop to many operators' plans to convert their vehicles.
The 11-tp figure is half the tax level imposed on hydrocarbon oils (petrol, and diesel). First reactions from the supply industry are that, though it is a pity that the Government did not give LPG a more advantageous tax rate, fleet operators can still benefit from switching to the fuel. At present the largest savings are offered from conversion of large-mileage, petrol-engined vehicles but development work is now proceeding with multi-fuel engines running on a mixture of LPG and diesel oil.