Published 26/06/2015 00:00:00 in Press Releases

“It is positive to see that following continued persistence from the Petrol Retailers Association (PRA), HM Revenue & Customs (HMRC) has published a consultation document on 17 June regarding the reimbursement of duty on petrol subject to vapour recovery”, comments Brian Madderson, PRA Chairman.

This is an issue raised by their Technical Sub-Committee which the PRA has been trying to resolve for many years, because it was clear that the scheme had no legal basis and causes substantive loss to independent retailers.

Madderson continues, “The lack of any legal basis for the vapour recovery reimbursement scheme and the damage caused to petrol retailers has been brought to the attention of successive Treasury ministers and to the Chief Executive of HMRC by the PRA.

“With this consultation, HMRC has finally acknowledged the problems inherent in the scheme from its inception over twenty years ago. It is now consulting with interested industry groups as to whether and/or how to implement a legal mechanism to deal with duty on petrol subject to vapour recovery.

“It also highlights the deficiencies of the present delivery system, where retailers are always likely to be short delivered in their petrol loads, because heavily saturated vapour is captured as part of the process. The supplier always has the benefit of the captured product to sell again and at Duty Point Terminals, it gets the duty back from HMRC too.

“The PRA will evaluate the Consultation document and consider what should be done to correct the current situation, so that retailers are no longer disadvantaged.”




Rupal Rawal, Press Officer
Tel: 020 7307 3412
Mob: 07528 977 157
Press Office direct line: 020 7307 3422
Press Office fax: 020 7307 3406

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The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.

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