Wefan Gymraeg

Motion: Road tax levied on HVO biofuel

Proposed by Gwynedd & Mon Liberal Democrats

Conference notes that:

  1. Hydrotreated Vegetable Oil (HVO) is a biofuel made by treating vegetable oils with hydrogen. These vegetable oils include waste fats from animal farming and from cooking, and some alternative oils, such as algae.
  2. HVO is used as a fuel for lorries, replacing diesel, so helping businesses to reduce their greenhouse emissions.
  3. HVO has a longer shelf life than other biofuels.
  4. Most domestic oil-fired heating systems use kerosene, a fossil fuel that produces greenhouse gases when burnt.
  5. HVO can be used for domestic heating oil, as a replacement for kerosene. The costs to convert domestic systems to run on HVO are low compared to other replacement energy sources, such as heat pumps.
  6. HVO is taxed as road fuel, in the same way as petrol and diesel, which makes it financially unviable to use it for domestic heating. Kerosene for domestic heating oil, in contrast, only attracts VAT, currently at 5%. 

Conference believes that:

  1. It is vital for the planet that we reduce CO2 emissions from domestic heating.
  2. That electricity-based heating is only as green as the fuel that generated the electricity.
  3. That HVO can have a role in domestic heating. It is greener than fossil fuels, and is useful because it can be made by recycling waste products from cooking and animal farming.
  4. HVO, when used for domestic heating, should not be taxed at the same rate as petrol and diesel used for transport.

Conference calls for:

  1. HVO, when used for domestic heating, to be taxed at the same rate as kerosene.


Amendments to this motion should be submitted to [email protected] by 1pm on Wednesday 29th June.