HC Deb 16 September 2003 vol 410 cc689-90W
Gregory Barker

To ask the Secretary of State for Transport (1) what percentage by weight of road transport fuel LPG/CNG has provided over the last 12 months; [129922]

(2) what incentives are in place for motorists to use LPG/CNG; and how long these have been in place; [129923]

(3) what percentage by weight of UK road transport fuel is expected to be biofuels by the end of (a) 2005 and (b) 2010; [129924]

(4) what incentives are in place for motorists to use biodiesel and bioethanol; and how long these have been in place. [129925]

Mr. Jamieson

Figures supplied by HM Customs and Excise indicate that the percentage of all road transport fuel, by volume, of road fuel gases provided between July 2002 and June 2003 was 0.39 per cent.

The Government support the take-up of LPG and natural gas vehicles through both the fuel duty incentives for road fuel gases, which have been in place since 1995, and the grants, which have been available since, towards the purchase of LPG and natural gas vehicles, which are available through the PowerShift programme. In addition, discounts apply to alternatively fuelled cars under the carbon dioxide emissions based company car tax and graduated Vehicle Excise Duty regimes. As announced in Budget 2003, the Government have been consulting stakeholders on how best to ensure that future support for road fuel gases continues to reflect environmental and other policy objectives, with a view to announcing decisions in the 2003 Pre-Budget Report.

We recognise that biofuels also have a role to play in reducing the environmental impact of road transport. In recognition of these benefits, the Government have introduced a reduced rate of duty for biodiesel of 20p/1 below that for conventional ULSD. Since introduction of this rate in July 2002, production of biodiesel has increased more than 10 fold to over two million litres a month. A similar incentive 20p/1 in the rate for bioethanol is due to be introduced on 1 January 2005.

The Government intend to consult with all key stakeholders on UK implementation of the Biofuels Directive, which requires the UK to set indicative targets for the use of biofuels in road transport for both 2005 and 2010. Publication of the consultation paper is due in the first half of next year.

Back to