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Petrol industry calls for biofuel tax cut

The Local · 25 Mar 2011, 09:01

Published: 25 Mar 2011 09:01 GMT+01:00

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The industry is asking the government to cut the tax on the biofuel mix E10, which blends ethanol with regular petrol, because of poor sales, daily Bild reported.

The fuel reduces greenhouse gas emissions slightly, but many motorists believe the fuel can damage their car engines.

“E10 has a chance if it is taxed fairly,” Klaus Picard, head of the Association of the German Petroleum Industry, told Bild.

Picard said that the lower energy output of such blends needed to be taken into account when setting the tax rate.

“In accordance with the lower energy content, the petroleum industry is calling for a cut to the energy tax for E10 of two cents,” he said.

The Auto Club Europa has also in recent days called for such a tax reduction.

E10 is considered a low-ethanol blend, with the biofuel making up only 10 percent of the fuel by volume, with the other 90 percent regular petrol.

Government standards oblige the petroleum industry to make 6.25 percent of its total fuel sales biofuels in 2011.

Story continues below…

The issue of whether the fuel can damage engines is hotly debated. Many experts say E10 and lower ratios pose no harm to most engines. But about one in 10 cars may be unable to tolerate the new fuel.

The price of the fuel blend is already falling. The motoring club ADAC has reported that the biofuel now costs €1.515 per litre, which is 1.3 cents less than it cost last week.

The Local/djw

The Local (news@thelocal.de)

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Your comments about this article

09:36 March 25, 2011 by freechoice
i dun understand this E10 thing. Shouldn't it be cheaper since it is less efficient than Standard Super Fuel and provides less pollution. But it is the same price, for less fuel efficiency, and we have to buy more at the end!!!
09:57 March 25, 2011 by derExDeutsche
with the looming threat of global food shortages, a world in crisis, do we need any other 'Green' Incentives and Bail-outs, Dr. Merkel? Is this the time of Global Warming Tax revenue, is it more important than food?
14:42 March 25, 2011 by majura
It's all a bit of a farce.

The numbers on the bits of paper that Frau Smurfkel reads show that E10 is better than "E05" or normal Super... but only when it is combusted and the exhaust pushed out into the German atmosphere.

Again, it depends on driving style & car/car condition, but generally E10 is less efficient across the board. As this is difficult to quantify as it's relatively untested, E10 could be just as bad or even worse than Super.

As @derEx... mentioned food also become an issue. Rather than grow an edible crop, using land to grow ethanol-crops can be seen as a huge waste. What also is rarely mentioned is the amount of energy require that goes into producing Corn/Sunflowers/Palm Oil etc. let alone the dilemma of food vs. fuel. Many people would be surprised by just how much crude oil goes into the food we eat and the crops that are produced. Be it in the form of pesticides (I'm assuming there's no Bio E10) or diesel for the tractors & trucks.

Unfortunately I haven't seen any deeply extensive, analytical and in-depth studies/environmental reports in to the overall effects of E10 fuel.

I think that many in the CDU/FDP/SPD and around the world in general seek too much from human kind's technical abilities. Sometimes the best answer can be the simplest. Organised & affordable mass transit is just one.

Regardless, it looks like E10 is here to stay no matter what we say and I for one think it should be made cheaper via cutting fuel excise/tax.
16:10 March 26, 2011 by yhsanjay
In cold climates the engines get affected by blended fuel usage. Some water vapour is created in the fuel system and this is quite harmful for the engine.It is known to create starting problems.

In hotter climate the fuel is known to run normally in cars.
22:33 March 26, 2011 by krautrock
I'm not going to buy something that is produced with "food" and it is sold as gasoline.
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