Yesterday the Chancellor George Osbourne announced that as the economy is picking up he would look to help reduce household bills in his Autumn Statement. He specifically mentioned energy bills and so gave the impression he may reduce costs for home heating and motoring costs.
When it comes to motoring he has a lot of scope he could reduce the massive duty levied on petrol and diesel 57.95 pence per litre but when it comes to Home Heating Oil he has no room for reduction on duty rates as there is no duty charged on Kerosene also known as 28 Sec Burning Oil. Very few households use Gas Oil also known as Red Diesel for Home Heating however there is some room to reduce these rates as the Government charges 11.14 pence per litre duty on Gas Oil.
Even when it comes to VAT the rate charged is 5% on all deliveries up to 2,300 of both Kerosene and Gas Oil. See www.topupfuels.co.uk/FAQ/ for more information.
My guess is he will announce that the annual rate of increase will not automatically go through keeping rates as they are currently. In effect this is a politicians way of telling us he is reducing prices when in fact what he means is he is not putting them up any further.
We will all wait with baited breath to see if the cost of Home Heating Oil is actually reduced in the Autumn Statement. My advice is don’t hold your breath.