WCF backs call for tax reduction on eco-friendly heating oil

Ahead of the Spring Budget on March 6, WCF, based in Brampton, is urging the Government to make fuels such as Hydrotreated Vegetable Oil (HVO) more affordable and accessible to an estimated four million people dependent on off-grid heating.

HVO is currently taxed higher than fossil fuels like kerosene heating oil, which generates a monetary hurdle for residents eyeing greener swaps.

Approximately 1.7m UK homes utilise kerosene heating oil, a majority of them stationed in rural locations and off the gas grid. 

A minor amendment, costing around £500, to the home boilers is needed for HVO to work within existing oil heating systems, usually achieved during a routine service.

Allan Stobart Fuels was one of 16 heating oil distributors which took part in the UK-wide HVO trial (Image: Supplied)

WCF is part of the UK and Ireland Fuel Distributors Association (UKIFDA), which alongside OFTEC, is advocating for a decrease in taxable duties on renewable liquid heating fuels as part of the Future Ready Fuel campaign.

The campaign published the positive outcomes of a three-year trial where 135 UK properties were changed to HVO.

WCF was one among the 16 heating oil distributors who joined the HVO scheme. Its Carlisle-based business, Allan Stobart Fuels, delivered the renewable liquid fuel to nine of its domestic heating customers.

Headquartered in Cumbria, the part employee-owned firm employs nearly 400 people across more than 30 UK locations.

Currently, WCF distributes HVO fuel to the transport sector who enjoy a reduced duty for commercial fleets under the Renewable Transport Fuel Obligation.

WCF operates Allan Stobart Lubricants & Fuels, WCF Chandlers, WCF Fuels North West, and WCF Fuels North East.Phil Murray who is Deputy Managing Director of WCF (Image: Supplied)

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."

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.”