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136 
P FUEL PRICES
Page 7
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French carbon levy does not close fuel-duty gap
THE FRENCH government is set to levy a carbon tax of €17 (215) on every tonne of carbon dioxide equivalent to approximately two cents per litre on diesel for UK hauliers refuelling in France.
French president Nicolas Sarkozy claims he wants to reduce demand for fossil fuels. He says: "There is one objective: to encourage homes and businesses to change their behaviour."
James Hookham, director of policy at the Freight Transport Asso ciation, says while UK hauliers will have to pay the levy on French fuel, it will not come close to redressing the disparity between British and French fuel duty.
"This does not close the gap with fuel duty in the UK," he says. "Effectively, it can be absorbed by fluctuations in prices. What is the real French motive? This is about raising money. They hope that people forget about it, in the same way as putting 2p a litre on fuel here. It has nothing to do with carbon or changing people's behaviour."