Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the potential merits of reducing vehicle tax for motorists who drive LPG cars.

The government uses the tax system to encourage the purchase of cars with low carbon dioxide (CO₂) emissions. The Vehicle Excise Duty (VED) system works in a technology-neutral manner to encourage the uptake of fuel efficient, low CO₂ emitting models irrespective of whether they are fuelled by petrol, diesel or battery power.

From 1 March 2001, alternatively fuelled cars, including those powered by Liquid Petroleum Gas (LPG) and bioethanol, as well as hybrids, receive a £10 discount on their annual VED payment.

LPG incurs a tax rate of £0.3161 per kg. This is compared with petrol or diesel, which has a tax rate of £0.5795 per litre. At Autumn Budget 2017, we also scrapped the LPG escalator.