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<p>The government uses the tax system to encourage the purchase of cars with low carbon
dioxide (CO<sub>2</sub>) emissions. Vehicles powered by Liquid Petroleum Gas (LPG)
benefit from a reduced rate of fuel duty in comparison to the main road fuel rate.
Budget 2018 extended the current duty differential until 2032, subject to review in
2024.</p><p> </p><p>Furthermore, from 1 March 2001, cars powered by LPG, including
those converted following first registration, receive a £10 discount on their annual
VED payment.</p>
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