Fuel duty freeze and clean fuel differentiators good, but not good enough06 December 2013

Transport organisations appear broadly pleased with yesterday's (5 December 2013) Autumn Statement, with the widely anticipated fuel duty freeze and the maintained differential for cleaner alternative fuels attracting the most attention.

Frieight Transport Association chief exec Theo de Pencier, commented that cancelling the fuel duty increase (1.61 pence per litre) again will save the transport industry around £186 million – although he added that only a reduction would encourage operators to invest in the future.

"George Osborne's announcement today is good but not good enough," said de Pencier. "Whilst FTA is delighted with the Chancellor's confirmation that fuel duty will be frozen next year, we would have liked ... a cut in fuel prices."

And he adds that FTA would have liked the Chancellor to commit to making vehicle excise duty stable.

That said, de Pencier also states that the FTA is delighted that "the Chancellor has taken note of [our] request to maintain the differential between the main rate of fuel duty and the rate for road fuel gases, such as liquefied natural gas (LNG) and compressed natural gas (CNG) for 10 years".

LowCVP managing director Andy Eastlake agrees: "The LowCVP and its partners have been calling for longer-term certainty in future fuel duty rates for cleaner fuels to encourage adoption and investment.

"This announcement will provide over 10 years of stability for vehicle operators considering investing in low-carbon vehicles, particularly for commercial fleets."

Eastlake also draw attention to the Chancellor's indication that the Coalition says it will review the impact of these incentives on vehicle uptake and the public finances at Budget 2018, if elected – and that it will seek EU approval to apply a reduced rate of fuel duty to methanol.

And he approves of the National Infrastructure Plan (NIP), and the government's intention to invest £5 million during 2014—15 in an electric vehicle-readiness programme for public sector fleets.

Author
Brian Tinham

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