Lords call for tax cut on natural gas
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• The Government is being urged to cut the tax on natural gas to encourage more operatom to use it as vehicle fuel,
A report by the House of Lords Select Committee on sustainable developments says natural gas needs to be promoted to help cut air pollution caused by traffic.
Tax currently adds 33p to the cost of a kilogram of the fuel — the permitted minimum level of tax within the European Union is just 7p.
Tom Gorman, who heads a British Gas division which supplies natural gas vehicles, says there are three 17.5-tonne trucks and at least 300 vans powered by the fuel in the UK.
"At present, the costs of natural gas are on a par with diesel," he says, "because it costs anywhere between £3,000 and £5,000 to get a truck converted. There is no incentive for the haulier to make the conversion."