GOVERNMENT plans to cut the duty on ultra-low sulphur petrol by 2p a litre (9.12p a gallon) in the March 7 Budget are to be extended for three months to unleaded petrol. The unusual pre-Budget announcement is to allow time for ultra-low unleaded sulphur petrol to be made available at all forecourts nationwide.

Chancellor of the Exchequer Gordon Brown has cut duty on some fuels in recent Budgets and in his pre-Budget Statement last year he pledged that in the March 7 Budget he would: freeze duty on all road fuels and cut duty on ultra-low sulphur petrol by 2p a litre (9.12p a gallon) to widen its differential with unleaded petrol, cut duty on ultra-low sulphur diesel by 3p a litre (13.56p a litre) and cut duty on lead replacement petrol by 2p a litre (9.12p a gallon).

While oil companies say they are on target to ensure that ultra-low sulphur petrol is on sale at all their forecourts by the end of March, there is concern that the fuel is not reaching more than 5,000 independent retailers. Therefore, the Government says that the already announced Budget Day cut in ultra-low sulphur petrol will be matched with a reduction in duty on unleaded petrol for a temporary period until June 14. While the pre-Budget statement set out duty changes, the Government says that final decisions on actual duty rates and any changes will be taken by the Chancellor on March 7.