Germany's biodiesel taxes have destroyed market – group

24 May 2011 17:04  [Source: ICIS news]

LONDON (ICIS)--Germany’s high taxes on biodiesel and plant oils have destroyed the country's biodiesel market and driven many smaller producers into insolvency, a trade group said on Tuesday.

Berlin-based Verband der deutschen Biokraftstoffindustrie (VDB) said Germany's market for 100%-biodiesel fuel (B100) has collapsed as a result of unfavourable tax conditions. B100 is used by trucks and buses.

Biodiesel’s share of the overall diesel fuel market has dropped to 7%, from 12% in 2007, the group said.

Only 200 petrol stations are currently offering B100, down from 1,900 a couple of years ago, it added.

A number of biodiesel producers have shut down plants and many smaller firms have been forced into insolvency because of the high taxes, the group said.

As a result, competition on Germany’s diesel fuel market has declined, to the benefit of large oil firms, said VDB general manager Elmar Baumann.

VDB is calling for a change in policies on taxing fuels in order to give Germany’s biodiesel, which is produced in an environmentally sustainable manner, a market chance, Baumann said.

In related news, Germany’s competition authority, the Bundeskartellamt, said this week that the country’s fuel prices are high because there are not enough suppliers.

Check out Doris de Guzman’s Green Chemicals Blog for views on sustainability issues

By: Stefan Baumgarten
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