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HMRC internal manual

Oils Technical Manual

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HM Revenue & Customs
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Measurement: vapour recovery: Vapour recovery on loading from duty-suspended installations

Vapour recovery on loading from duty-suspended installations

Gasoline or petrol vapour adds to ozone depletion and contains carcinogens such as benzene. It is also very dangerous - a 1 to 7% mixture with air can be explosive. Vapour recovery plants may be found dotted around any refinery or storage and distribution depot. Vapour recovery takes place for more products than gasoline, but gasoline yields are the most substantial returns - a cubic metre of vapour at 25ºC can be converted to 2 litres of liquid. This recovered liquid is not the same as gasoline. It is the most volatile parts of the gasoline or other mineral oil that evaporate. Consequently, the recovered liquid is usually ‘flooded’ or re-mixed into a tank of ordinary gasoline or oil, but not in too great a proportion. Because the vapour is of a different specification to the fuel it is derived from, it being effectively a fraction or distillate, some plants burn the recovered vapour as heating fuel.

Extra statutory concession on recovered motor spirit vapour

There is an extra statutory concession (ESC) allowing relief from duty for recovered motor spirit vapour. This only applies to vapour that has been recovered from fuel after having passed the duty point and the recovered vapour is returned to the duty suspended (i.e. not duty paid) storage. This ESC is currently under review and may be replaced by legislation or the concession to allow return to duty-unpaid stocks may be withdrawn. Check with Oils Policy if unsure.

Submission of claims

Reclaim of duty should be made monthly as a credit against the total duty shown on Form HO10.