Tax change boosts CNG r=01
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by Julian Birch • Customs & Excise is set to change the way it taxes compressed natural gas (CNG) in a move which could boost its use as a fuel for trucks.
Most experts agree that CNG offers significant environmental advantages over diesel—British Gas claims a 17% reduction in global warming potential. The Natural Gas Vehicle As expects Customs to break the 20year-old link between duty on gas and petrol, allowing the Government to introduce a tax advantage for CNG in the Budget.
Tom Gorman, national marketing manager at British Gas, says UK duty on CNG is 5% higher than for diesel when 4 the fuels are judged on their energy potential. Other EU countries including Holland, Italy and Belgium charge no duty on CNG.
7 Today (14 July) British Gas will tell a conference of 180 commercial users that it is prepared to invest up to £3rn in CNG filling stations in areas where fleet owners convert their vehicles.
There are only eight filling stations in the UK; so far only a handful of operators use CNG, including the Lane Group (for Body Shop) and British Gas itself.