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'British Gas is trebling its own NGV fleet to lead from the front'

2nd November 1995
Page 46
Page 46, 2nd November 1995 — 'British Gas is trebling its own NGV fleet to lead from the front'
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Which of the following most accurately describes the problem?

6 public and political awareness of the

impact of vehicle pollution has reached new heights. Many have talked about the problem butfew have offered a credible solution. Calls to ban the vehicle from our town centres are simply unrealistic.

The time has come to take action. Natural gas powered vehicles (NGVs) provide a realistic, attractive and attainable solution to reducing vehicle pollution, particularly in urban areas. The major barrier to their growth in Britain is the lack of economic incentives for fleet operators using natural gas, due principally to the level of fuel duty. This is more than 400% the European Union minimum, whereas the duty on petrol and diesel is set close to the minimum. The level of fuel duty must be reduced to attract investment into NGVs and allow the natural gas vehicle market to develop in the UK. An EU minimum rate would provide sufficient financial incentive to the highmileage commercial fleet market and would signal the Government's support for less polluting levels. There are about 24.4m vehicles on UK roads. The Department of Transport predicts this will rise to 28.9m by 2000 and to more than 35m by 2010. The National Gas Vehicles Association estimates that with the right fiscal incentives it is realistic to expect 200,000 natural gas vehicles on the rood by 2000. But what is the cost? In the UK there are 350 gas powered vehicles. The NGVA reckons that the dub, paid each year is about £1 60,000. If duty were lowered to the EU minimum, the reduction per year in duty paid would be about £110,000. Assuming 200,000 commercial vehicles using natural gas on the road in 2000, total gas duty paid at the EU minimum would be £39m, compared with duty of £224m which would have been paid on diesel. This gives a net reduction in duty of £185m. The reduction in revenue (a modest loss set against the total amount of revenue raised from fuel duty} should be set against the considerable environmental benefits. Fleet operators will not invest in natural gas vehicle technology purely on environmental grounds. They need an adequate and costeffective return on investment.

Earlier this year reports from parliamentary select committees have called on the Government for drastic cuts in tax on natural gas as fuel. These calls have been echoed by the private sector, with the Advisory Committee on Business and the Environment recommending that the Government should encourage a switch to alternative fuels.

British Gas is trebling its own NGV fleet to lead from the front. Natural gas is not a pipe dream—it is the fuel of the future. The only way to move forward is for the Chancellor to reduce the road fuel duty on natural gas in this month's Budget. It's our best chance of cutting vehicle pollution in city centres.


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