Refinery investment needed to address diesel shortage - Wood Mackenzie
Thu 25 August 2005
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The sharp rise in diesel fuel prices appears to be one result of the success of the diesel car. According to oil consultancy, Wood Mackenzie, Europe will suffer a 50m tonne shortfall of diesel by 2015 without large scale investment in new refining capacity.
According to a report in the Financial Times, half of all new cars sold in Europe this year will run on diesel. Overall, consumption of diesel has been rising by more than 4 per cent a year while petrol consumption has fallen in each of the last five years.
Meanwhile, the Government has announced a small increase in the Bus Service Operators Grant (which is paid to local bus operators and community transport groups) from 1 October 2005 to encourage operators to switch to a blend of diesel/biodiesel.
The new rate for use of a 95%/5% diesel/biodiesel blend will be 37.96 pence per litre which is the same rate as applies to use of Ultra Low Sulphur Diesel.
The grant rate for use of unblended bio-diesel will remain at 27.1pence per litre which is 100% of the fuel duty levied.
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