TAX DIFFERENTIAL HITS DIESEL PRICE
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ON TOP OF THE staggered 3p/ litre increase, the removal of the 20p/litre tax differential on biodiesel from today (1 April) will also have an effect on the price hauliers pay for diesel.
Vanessa Guyll, technical specialist for fuels, safety and environment at the M. says: With the loss of the differentiator, the cost of biodiesel will jump from 36.190re to 57p/litre and fuel suppliers will have to cover the cost of biofuel that's used as a blend in regular diesel.
Under the government's Renewable Transport Fuel Obligation (RTFO), all diesel has to include a 5% blend of biodiesel so the loss of the biotuel differentiator will result in an extra 1p1 litre duty rate being added onto regular diesel.
A spokesman for BP tells CM that its pump price varies from site to site, but the company would aim to be competitive at all its outlets.