§ Dr. CableTo ask the Secretary of State for the Environment, Transport and the Regions what steps he is taking to increase the availability of(a) city diesel and (b) other low-emission fuels. [61801]
§ Ms Glenda JacksonThe Government are aware of the environmental benefits of cleaner fuels and have focused on using fiscal incentives to encourage their wider use and availability.
Ultra low sulphur diesel currently enjoys a 2 pence per litre duty differential compared with standard diesel. In the Pre-Budget Report the Chancellor reaffirmed his intention to increase this to 3 pence per litre at the next Budget. In little over a year since such incentives were first introduced, sales have increased to account now for some 17.5% of total diesel supplied.
The duty on liquid petroleum gas and compressed natural gas at 21.13 pence per kilogramme (approximately 2 litres) is significantly lower in relative terms than the duty on standard diesel at 44.99 pence for one litre. The Government are committed to at least maintaining the 1997 duty differential between road fuel gases and standard diesel.
Through the Cleaner Vehicles Task Force, Government is working with industry to consider the mechanisms for developing improved infrastructure to make cleaner fuels more widely available.