HCOTEG12760 | Introduction and overview of oils activity: excise duty on oils (Duty Liability): introduction

Excise duty on oils becomes due either when they are imported or when they are released to home use from a tax warehouse. Each oil product has an excise duty rate and an associated tax code.

Duty Structure

The excise duty on oils and their control beyond the duty point is largely determined by their intended use.

Duty paid

Used as a Road, Boat or Air Fuel

• Heavy oil (also known as diesel or DERV)

• Bioblend of heavy oil and biodiesel

• Light oil (also known as petrol)

• Bioblend of light oil and bioethanol

• Biodiesel

• Bioethanol or Other Light Oil

• Heavy Oil which is not ULSD or SFD (DERV)

• Road Fuel Gas other than Natural Gas (LPG)

• Natural Gas used as a Road Fuel

• AVGAS

• Additives used in Road Vehicles

• Fuel Substitutes used in Road Vehicles

• Heavy oil used for propulsion of private pleasure craft

Partially rebated

Used as fuel in an excepted machine

• Marked Rebated Gas Oil (MGO) and ULSD

• Marked Kerosene (MKO) used in excepted machine (Duty paid at MGO rate)

• Light Oil delivered for use as Furnace Fuel (LOFF)

• Biodiesel

• Bioethanol

• Fuel Oil

Fully rebated

Used as Aviation Fuel or for Heating

• Marked Kerosene for Heating

• AVTUR (unmarked)

Details of the excise duty rates, tax codes and rebates for mineral oils can be found in the UK Tariff.

Current rates of excise duty on hydrocarbon oils can be found on GOV.UK.

The public can also obtain them from our enquiry line on 0300 200 3700.