Mineral Oil Tax on vehicle gas

Overview

Natural gas supplied to consumers is liable to Natural Gas Carbon Tax (NGCT). Up to 31 December 2016 this included natural gas that was supplied for use as fuel for motor vehicles.

From 1 January 2017, Section 38 of the Finance Act 2016 introduced a provision making:

  • natural gas
  • or
  • biogas

that is supplied for use as motor vehicle fuel subject to Mineral Oil Tax (MOT). Gas supplied for such use is called ‘vehicle gas’. In addition, from that date NGCT will no longer apply to supplies of vehicle gas.

Vehicle Gas does not include Liquid Petroleum Gas.  Duty rates for Liquid Petroleum Gas are included in the rates section.

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