Dramatic undercompensation for pure biodiesel fuel

UFOP insists that coalition treaty be honoured

Hannover, 16 November 2011 – On the occasion of EuroTier 2010, the chairman of UFOP, Dr. Klaus Kliem, demanded that the German government should honour the promise of reviving the pure fuel it made in the coalition treaty.

Report concerning the tax shelter for biodiesel as pure fuel
Development of overcompensation/undercompensation as pure fuel

*) 25% soybean oil

Sources:
AMI-Makt-Spezial Ölsaaten+Biokraftstoffe
UFOP- Maktinformation Ölsaaten+Biokraftstoffe
VDB-Mitgliederumfrage
© UFOP 11/2010

As reasons for this demand, the UFOP chairman referred to recent calculations by UFOP concerning overcompensation/undercompensation in the case of biodiesel. The Association found an undercompensation for pure biodiesel fuel of 22 cent/liter for the months from July to October. Approximately the same undercompensation was stated for rapeseed oil fuel, Dr. Kliem said. The reasons for the growing undercompensation found by UFOP are that in addition to the tax of 0.18 EUR/l levied the raw material price of 0.61 EUR/l for the period from January to June had gone up to 0.71 EUR/l for the period from July to October. Looking at the development of raw material prices, another rise can be expected for 2011. Dr. Kliem referred to the importance of the pure fuel market as a major source of revenue for the indigenous biodiesel and plant oil fuel market. Many smaller facilities had ceased production altogether. So a revival of the pure fuel market was an urgent necessity. The UFOP chairman recalled the demand by the Bundesrat, the second chamber of German parliament, to limit the tax shelter to the maximum amount for each firm with the aim of putting a cap on the tax deficit. The biodiesel and plant oil fuel market was waiting for a proposal by the federal government.