The partial taxation on biodiesel to the tune of 8.86 cents per litre and on vegetable oil fuels to the tune of 2.07 cents per litre must be stopped immediately and the succeeding stages of increases must not come into force. This demand was made by the Chairman of the "Union zur Förderung von Oel- und Proteinpflanzen e. V. (UFOP)", Dr. Klaus Kliem at the conference "Fuelling the Future" of the Federal Ministry of Agriculture during the German EU Council Presidency this Tuesday in Nuremberg. "Germany is running the risk of losing a distribution structure established in the past years with much work and capital in the trade and currently with approx. 1,900 public biodiesel filling stations. The acknowledgement of this demand expressed by politicians in Nuremberg is not sufficient. Rigorous action by the federal government and parliament is urgently required" stressed the UFOP Chairman.
The UFOP also demands that an appropriate partial taxation of the pure biofuel should be introduced in energy tax legislation as appropriate to the necessities of the market. In particular, this includes addressing the difference between the actual energy content of diesel fuel and biodiesel/vegetable oil and preservation of the purchase incentive of 10 cents per litre in the same way as the ruling for natural gas as a fuel. Also, the UFOP holds the opinion that a timely examination of excessive and lacking compensation is essential. The association also sees no justification for the levy of ecological taxes on biodiesel and vegetable oil to the tune of 15 cents per litre.
The UFOP is following the current developments in the field of biodiesel production and marketing in Germany with deep concern. In view of the fallen prices for crude oil and thereby for diesel fuel, which was not anticipated to this extent by politicians, the existence of small and medium biodiesel and vegetable oil fuel producers is questionable. Without a rapid reaction from legislators, there is a danger that the sales of over half of production will be lost and the capacities created on trust of tax exemption until 2009 and beyond may be quickly lost.
The biofuel quota legislation, which lays down rulings for the admixture of biodiesel in diesel fuel, is oriented to the possible admixture in the European standard for diesel fuel limited to max. 5% by volume. The automotive industry is adverse to a short-term increase in the standard to 10% of biodiesel, although the biofuel quota legislation targets a higher proportion in the overall quota. Until now, the automotive industry has not fulfilled its own obligations to achieve the technical conditions for the use of 10% of biodiesel in diesel fuel. On the other hand, the biodiesel capacities are required to fulfil the obligations of the vehicle industry to reduce CO2 emissions from 130 g to 120 g per kilometre and also the mandatory volumes resolved by the EU Energy and Environment Council of 10% biofuels by the year 2020 , stressed the UFOP.