Daily Finance
hereDaily Finance - Adrian Holliday wrote:
EU green tax to add 1.5p to litre of fuel
Adrian Holliday - Apr 12th 2011
Brussels bureaucrats are cooking up a new 'green' fuel tax - and its impact will hit owners of diesel cars hard.
Owners of petrol engined cars will also be hit, though not as much. UK motorists are already being clobbered by the soaring price of fuel. MORE fuel pain could be en route.
Black future for black pump?
The tax proposed would see extra cash charged for diesel because the tax would be based on a fuel's energy content rather than its volume. Diesel contains more energy - more carbon - than petrol. Which is why they're often more economical as well as more powerful.
But the EU argues that without a level 'energy' playing field, diesel vehicles (and their owners) are effectively being subsidised. Unfair, they cry.
Diesel cars are hugely popular, not just for their efficiency but also for their 'green' credentials. New diesel cars in the UK outsell petrol cars by some margin. Diesel cars generally emit considerably fewer carbon emissions.
However, the flip side of the coin is that diesel cars also emit more smaller polluting particles, which can damage air quality.
Extra costs already here
The extra penalties for owning a diesel car have already arrived. Diesel car owners in posh Tory borough of Kensington and Chelsea now face a £15 surcharge on their parking permits from the start of this month.
UK diesel taxation, including duties and VAT, is meanwhile now close to 70% of what you pay at the pump. A new Brussels fuel tax would be a massive blow for the UK haulage industry, already under considerable costs pressure (fuel theft in the haul industry is on the rise).
It's thought the government would attempt to fight the move, possibly vetoing it. Expect the Germans to also fall in line. Car makers like BMW, Mercedes and VW have invested huge sums in diesel technology. This new tax would create huge manufacturing tremors not just in Germany but in France too.
In the meantime you may need to think carefully if you're buying a new car. Has diesel had its day?
Surely the UK cannot tolerate this step (if it comes into the UK), without far reaching consequences such as further avoidance of vehicle maintenance and more ? The UK economy would take a hit too and just at the time that we do not need it too. Perhaps it will kill us being in the 'EU' ?