The Treasury has confirmed that fuel duty is set and harmonised with the UK under the Customs and Excise Agreement between the two governments.
Responding to a written question from Dr Michelle Haywood, Treasury Minister Chris Thomas outlined how Hydrocarbon Oil Duty is a shared duty under the Customs and Excise Agreement.
Paragraph 6 of that agreement requires the island to keep “all Customs and Excise revenues at the same rates and subject to the same conditions and reliefs as in the United Kingdom”.
The revenue share from fuel duty is calculated through the Final Expenditure Revenue Sharing Agreement (FERSA), based on actual consumption in each territory.
Rates for unleaded petrol and diesel were £0.5795 per litre before 23 March 2022, and have been £0.5295 per litre since that date.
A rebate applies automatically for home heating uses.