Chancellor failing on ‘green fuel’ taxes
Cleaner, green fuels are being singled out for fuel duty increases in the upcoming budget, according to Calor Gas.
In December 2013, the Chancellor of the Exchequer George Osborne MP introduced a 10-year duty trajectory for gaseous road fuels, including Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG).
However, whilst the differentials for CNG and LNG were frozen the Autumn Statement also introduced a fuel duty escalator, but only for LPG.
Calor Gashas asked the Chancellor to reverse his decision in the 2014 Budget, which will be presented to the Commons on Wednesday.
“Air pollution is Britain’s forgotten environmental and public health crisis,” a
Calor Gasspokesman said.
“Each year, around 29,000 deaths are attributable to man-made fine particulate air pollution in the UK, at a cost to the economy of £15bn a year. Other pollutants cause further damage to our health and our economy. Motor vehicles are a significant source of this air pollution.
“Automotive LPG, or autogas, can play a significant role in reducing emissions of these harmful pollutants from the transport sector, and yet the Government has consistently failed to provide the legislative support that would enable the market for this cleaner, greener fuel to grow.”
The decision to differentiate between LPG and CNG/LNG was based on the Treasury’s view that LPG is not as environmentally beneficial as natural gas.
“The Government subsequently admitted that its decision was based on outdated and incomplete data from 2003,” the spokesman said.
“We have since brought modern substantive new data to the table, which we hope will lead to a revision of policy that places all gaseous road fuels on a level playing field.
“The LPG fuel duty escalator will impede the growth of this cleaner fuel at exactly the same time we are under pressure from the EU for breaking NOx and particulate levels in our air, much of which in both cases comes from transport. LPG autogas emits negligible levels of particulates and up to 90% less NOx than diesel.”
The industry trade association UKLPG has become an official partner of Fair Fuel UK.
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