Is it legal to use Biodiesel, Used Cooking Oil or Straight Vegetable Oil to fuel my car? How is it taxed?
Yes, it is legal, as long as you pay the correct amount of tax. If you purchase the biodiesel/ UCO/ SVO from a reputable supplier, the tax should already be included in the price. If you produce or source your own fuel, you are responsible for declaring and paying for your fuel consumption, even if you are using vegetable oil/ UCO bought from a supermarket, restaurant or a local farmer. There is a duty on biodiesel, which is 20p less than regular diesel and petrol. This helps to make biodiesel able to compete on price with fossil fuels.