Fuel company Rubis introduced a 100% renewable diesel called RD100, made from rapeseed, sunflower and soybean vegetable oils, and waste animal fats or used cooking oils.
When it was first launched the price was generally £1.24 per litre, but a duty rate of 63.4p per litre has seen the price soar to nearly £1.90 a litre and within a few weeks of launch it has disappeared from almost every forecourt in the island.
Nigel Staples, from the Guernsey Fuel and Oil Watch group, said the States had taken a retrograde and backward step.
‘I think it’s absolutely ridiculous. They’ve got a fuel which is potentially the best thing since sliced bread, it’s fantastic for the environment, it’s fantastic for Guernsey, but the States of Guernsey has completely blown it out the water with the tax on it.
‘Obviously it’s a more expensive fuel to produce so the duty hike on it is going to be an absolute killer.
‘I was using it regularly myself but retailing at nearly £1.90 per litre makes it completely unrealistic for 99% of people.’
Trev’s Motorcycles owner Trevor Hockey said customers were very impressed with the green fuel, saying their vehicles started up easier, had more power, and emitted less black smoke.
He was disappointed that it was disappearing locally.
Nick Crolla, head of sales and marketing for Rubis Channel Islands, hoped a compromise could be found in the future.
‘Rubis has noted that duty will now be applied to sales of its innovative RD100 renewable diesel fuel at all Guernsey forecourts,’ he said.
The company was in ongoing discussions with the States about an appropriate level of duty in the longer term.
‘RD100 has significant benefits for the environment, carbon emissions savings and lower local fumes emission, and for the performance of diesel engines, making them more efficient and cleaner.
‘The dialogue to date between the States of Guernsey and Rubis has been encouraging and the company is looking forward to working with government to strike an acceptable balance between the environmental benefit and the duty that should be paid on RD100.’
When the green fuel was launched in March it came with some fanfare, and Deputy Lindsay de Sausmarez, president of Environment & Infrastructure, gave it her backing and wished it every success.
A States spokesman offered an updated statement: ‘The States of Guernsey and Rubis have been in discussion on the duty applicable to the new RD100 fuel. This is currently set in line with biodiesel rates at 63.40ppl. Discussions will continue on what is an appropriate level of duty long-term, and the States looks forward to working closely on this with Rubis, as well as other distributors and members of the industry.’
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