Fuel distributors back calls for renewable liquid fuel tax to be slashed

A leading UK heating oil distributor is backing the call for the Chancellor to slash the tax on renewable liquid heating fuels. 

Key industry players join the calls for renewable fuel tax to be axed.

Fuel distributor, WCF, is a member of the UK and Ireland Fuel Distributors Association (UKIFDA) which is campaigning jointly with OFTEC, which represents liquid heating fuel equipment manufacturers and training providers, to reduce the tax paid on renewable liquid fuels for heating as part of the Future Ready Fuel campaign.

Hydrotreated Vegetable Oil (HVO) is currently taxed at a higher rate than fossil fuels such as kerosene heating oil, creating a financial barrier for householders looking to switch to greener alternatives.

Ahead of the Spring Budget, on March 6, WCF is urging the Government to make fuels such as HVO more accessible and affordable for the estimated four million people who rely on off-grid heating. Around 1.7m homes in the UK currently use kerosene heating oil to heat their homes, with the majority of these properties in rural areas and off the gas grid.

Tried and tested

Phil Murray, Deputy Managing Director at WCF, said: “The upcoming Budget is an ideal opportunity for the Chancellor to equalise the tax duties for renewable liquid fuels, making them a real option for people who want to reduce their home heating emissions in an affordable way. 

“Renewable liquid fuels are a tried and tested alternative, delivering a carbon reduction of up to 88%, with minimal upfront costs and fuss to householders in converting boilers to HVO and no difference in performance from kerosene.”

The Future Ready Fuel campaign recently published the results of a successful three-year trial which saw 135 properties across the UK converted to HVO. WCF was one of 16 heating oil distributors which took part in the HVO scheme, with its Carlisle-based business Allan Stobart Fuels delivering the renewable liquid fuel to nine of its domestic heating customers.

Phil, who is a board member and Vice President of UKIFDA, said: “The feedback from participants in the demonstration project was overwhelmingly positive.

“It has shown that HVO is a cost effective, pragmatic and realistic solution to decarbonising off-grid homes. The trial also proved that HVO is highly versatile and was successfully used in both domestic and commercial buildings.”

HVO works in existing oil heating systems following a minor modification to the boiler which costs around £500 and can be completed as part of a routine service.

WCF currently distributes HVO fuel to the transport sector which benefits from reduced duty on renewable fuels for commercial fleets under the Renewable Transport Fuel Obligation.

To find out more about the campaign to support renewable heating fuels visit