Oil heated households are calling on the government to axe the tax on renewable liquid heating fuels.

They have written letters to chancellor Jeremy Hunt, urging him to make the change in his upcoming budget.

He has been urged to bridge the duty disparity between renewable liquid fuels and fossil fuels in home heating.

A step that could boost his popularity with rural voters in Somerset.

Roughly 47,000 residences in the county rely on oil heating.

Somerset County Gazette: Renewable liquid heating fuels such as HVO reduce carbon emissions by 88 per cent

At present, while kerosene for heating incurs no duty, renewable liquid fuels for heating are charged an extra 10p per litre.

Comparatively, renewable liquid fuels and fossil fuels when used for vehicular transportation have the same levies.

Trade associations OFTEC and UKIFDA perceive this inconsistency as nonsensical, stifling wider adoption of renewable fuels.

They propose equalising the duties on these fuels, mimicking the transportation sector where all fuels are treated equally.

They argue the move would be financially neutral for the government.

Somerset County Gazette: The Chancellor is being urged to ‘axe the tax’ on renewable liquid heating fuels

OFTEC CEO Paul Rose and UKIFDA CEO Ken Cronin said: "It’s increasingly clear the only solution to achieving the UK’s net zero ambitions is a pragmatic one.

"The diversity of off-grid housing stock lends itself to a multi-technology solution.

"It’s not a case of one size fits all.

"Renewable liquid fuels offer an affordable and practical solution for the 47,000 oil heated households in Somerset to drastically cut their emissions.

"It doesn’t make sense for the tax system to penalise the use of low carbon fuel for home heating when kerosene attracts a zero rate."

The government had promised a consultation on a Renewable Liquid Heating Fuel Obligation (RLHFO) within a year of the Bill's royal ascent.

OFTEC and UKIFDA have submitted proposals to the Treasury explaining how equalising the duties would be a cost-neutral measure and requires no subsidy.

Around 150 properties have converted to the renewable liquid fuel Hydrotreated Vegetable Oil (HVO) as part of an industry demonstration.

The conversion cost is under £500 in comparison to the £10,000 to £30,000 required to install a heat pump in off-grid homes.

It also delivers an 88 per cent drop in emissions.

OFTEC CEO Paul Rose and UKIFDA CEO Ken Cronin added: "The industry is ready and waiting to play its part in delivering net zero off the gas grid.

"Equalising the duty is cost-neutral to the government and they must now follow through with their commitment to a Renewable Liquid Heating Fuel Obligation."