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European Parliament votes against high rise in diesel excise

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The European Parliament is set to pronounce on a possible increase in minimum excise levels for diesel fuel, within the context of the Energy Directive. The Commission was proposing that there should be a fixed link between the price of petrol and diesel, which would result in substantially increased diesel excise in some countries.

 

A majority of MEP’s is opposed to this proposal. Excise calculations for fuel would be divided into two components : one allied to energy content and the other to CO2 emissions, which would give a boost to the use of alternative fuels… when they are available. The MEP’s also voted against banning all forms of professional diesel, which was also being envisaged. The Commission’s opinion remains consultative in nature, but would nevertheless carry some weight in the decision of the Council (all 27 members) which is expected in the coming weeks.

According to environmental association Transport & Environment, the parliamentary vote will also have the effect of obliging countries which maintain diesel excise at abnormally low levels (such as Spain and Luxembourg) to raise this level. This would make the practice of ‘fuel tourism’ less attractive, a practice which deprives Spain and Luxembourg’s neighbours of huge amounts of fiscal income.


19/04/2012  |  Claude Yvens
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