Lords call for bigger gas cuts
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by John Kendall • The Government's decision to cut the duty on gas fuels by 25% in the Budget has been described as a "kickstart" for road haulage.
Natural-gas duty now stands at 16.5p/lit, giving a pump price of 48.6p/lit compared with the retail diesel price of around 63p/lit.
Liquefied petroleum gas (LPG) is also affected by the Budget reduction. Duty now stands at 10.8p/lit, giving a retail price of around 36p/lit.
British Gas executive director Roy Gardner described the change as a turning point for natural gas vehicles.
"The welcome financial incentives should kick start the industry", says Gardner.
However, the reduction fails to meet one of the recommendations laid out in the House of Lords Select Committee on Science and Technology report, Towards Zero Emissions for Road Transport.
This report, published two weeks ago, recommended an immediate fuel duty cut to the EU minimum of 6.2p/lit.
The Government's plan to reduce Vehicle Excise Duty by .C500 a year for vehicles powered by "cleaner" fuels or with exhaust after treatment is in line with the Lord's recommendations. The incentive would apply to natural gas and LPG powered vehicles.
BOC Distribution runs two natural gas-powered vehicles on its Marks & Spencer contract. Chief engineer Sam de Beaux says the budget changes and possible grants available from the EU means the company will still con sider buying more natural gas-powered vehicles. "This is welcome news," he says, "but to open the floodgates to natural gas the duty needs to be reduced to around nine pence a litre."