Biofuels and Road Fuel Gases: Duty

HL Deb 06 October 2003 vol 653 cc39-40WA

Lord Palmer

asked Her Majesty's Government:

Whether the present disparity between the fuel duty rebate for biofuels and road fuel gases is in the national interest. [HL4563]

Lord Mclntosh of Haringey

The Government offer lower duty rates for less environmentally-damaging fuels by offering duty differentials relative to the main road fuels. These differentials are intended primarily to reflect the relative environmental benefits of the fuels in question, but they also take account of other factors, such as costs of production and supply, and wider social and economic benefits, including fuel security and the potential to encourage the recycling of waste products. The primary environmental aim of the incentive for biofuels is to reduce greenhouse emissions, and for road fuel gases, to improve local air quality. The incentives also take account of the fact that, unlike biofuels, road fuel gases require a separate refuelling infrastructure and specially designed or converted vehicles.