A proposed European Commission Directive that would see motor fuel taxes calculated based on a split of CO2 and energy based components has drawn opposition from NGVA Europe, representing natural and bio gas vehicle (NGV) industry members in Europe. In a website bulletin, the association says the proposal “would have disastrous consequences for the NGV industry, including biogas being injected into the gas grid.”
Citing a 400% tax increase for natural gas as a fuel, while more or less maintaining current tax levels for petrol and a slight increase for diesel, NGVA Europe says the proposal conflicts with the objectives of the Commission’s own White Paper on future transport, released just weeks earlier. The white paper proposes reduced dependence on oil, while NGVA Europe says the new fuel tax proposal would effectively incentivise it’s continued use and act as a disincentive to the use of lower carbon fuels such as natural gas and biomethane.
This article compiled using information from NGVA Europe.