Biodiesel duty saving extended until 2012

The Treasury announced in the 2008 Budget that it would remove a 20p/litre tax break for all biodiesel from April this year, on the grounds it was too difficult to distinguish between sustainable biodiesel or those that raise wider socio-economic concerns.

However, the retention of the 20p/litre differential  will only apply to those biofuels made from used cooking oil (UCO), while those produced using plant-based feedstocks will carry the same fuel duty as regular diesel.

Joanna Pegg, fleet manager at 3663 First for Foodservice, says: "We've been using biodiesel made from UCO in our trucks since June 2007 and the main benefit for us is that it reduces our carbon footprint. Had the government abolished the duty saving on all biodiesel, we would have stopped using it in our trucks and used it on site generation, but, as a result, we will continue to operate as normal."

Mark Sneesby, chairman of the UK Sustainable Biodiesel Alliance, tells CM: "The government has made a positive move to support the UK's low-carbon economy.

"Biodiesel produced from a fully sustainable fuel source, such as UCO, which would otherwise go to landfill or contaminate the sewer system, has already saved more than three million tonnes of  CO2."

Source: roadtransport.com