HC Deb 29 November 2000 vol 357 cc609-10W
Mr. Llwyd

To ask the Secretary of State for the Environment, Transport and the Regions what steps are being taken to ensure increased availability of ultra-low sulphur petrol. [140211]

Mr. Hill

My right hon. Friend the Chancellor announced his intention in his pre-Budget report on 8 November to reduce the duty on ultra-low sulphur petrol (ULSP) by a further 2p a litre in Budget 2001. This cut would be conditional on the oil companies guaranteeing nationwide access to its environmental benefits. ULSP currently constitutes around a third of petrol consumption in the UK, following a 1 p/1 in duty from October 2000. The United Kingdom Petroleum Industry Association (UKPIA)—the trade association representing the major UK oil refiners—has already said its members are committed to ensuring the conditions exist for the Chancellor to implement his duty rate reduction in Budget 2001.

Mr. Öpik

To ask the Secretary of State for the Environment, Transport and the Regions what assessment he has made of the impact of low sulphur fuel on engine performance and fuel efficiency; and if he will make a statement. [140247]

Mr. Hill

Other fuel properties being constant, the use of low sulphur petrol or diesel fuel will have no impact on engine performance or the fuel efficiency of a vehicle. It will, however, contribute directly to a reduction of sulphates and particulates discharged from the tailpipe. For vehicles fitted with exhaust catalysts, reduced emissions of NOx, CO and hydrocarbons may also be expected owing to improved operation of the catalyst and control sensors that may be affected by sulphur poisoning.

The processes used by individual oil companies to formulate low sulphur diesel could change other fuel properties that could potentially result in some loss of engine efficiency, but experience with ultra-low sulphur diesel (ULSD) indicates that most oil companies use a combination of refinery processes and additives to ensure any potential performance loss is minimised or eliminated entirely. In some cases, enhanced performance and fuel economy is claimed. Any effects should, therefore, be minimal but could vary from engine type to engine type and on the degree to which the vehicle is maintained.

Motorists should experience no noticeable difference with ultra-low sulphur petrol (ULSP) compared to their normal grade. This fuel will, however, facilitate the introduction of new fuel-efficient vehicles that are expected to be increasingly introduced onto the market over the new few years. These vehicles should offer a significant fuel savings when running on ULSP.