Maintain the fuel duty differential to reduce carbon emissions- new study concludes

27th September 2018
An economic study commissioned by The Natural Gas Vehicle Network (NGVN) to explore the impact of the fuel duty differential between diesel and gas concludes that ‘retaining the duty differential is an important policy which complements other initiatives aimed at reducing HGV greenhouse gas, GHG, emissions.’
  • Fuel duty

Frontier Economics, on behalf of NGVN, conducted in-depth analysis on the current fuel duty differential, concluding that it is enabling the growth of the gas vehicle industry which will, in turn, help to reduce carbon emissions and improve air quality from heavy goods transport.

Mike Foster, Chief Executive, NGVN said;

“HGVs in the UK represent just 2% of vehicles on the road but contribute 17% of transport carbon emissions. This needs to change. Keeping gas prices lower than diesel is exactly the sort of encouragement fleet managers need to make that essential switch, from dirty diesel to cleaner gas.”

“With carbon savings of 20% for natural gas and over 80% for biomethane, compared to diesel, the road ahead is clear for the Government to achieve its own target of substantial carbon savings by 2025.”

“This report, by leading economists Frontier Economics, helps make the case in clear, hard-headed numbers. I’m sure the Treasury will want to take note of this new analysis ahead of Budget 2018 this autumn.”

We will now take the final report to government and discuss its findings and recommendations with policymakers.