fuel tourism

The European Commission said the wide variation in rates of diesel (officially known as gas oil) taxes creates distortions in the road haulage market – and also increases environmental damage by encouraging “fuel tourism” by hauliers (i.e. making special journeys or using longer routes in order to fill up in a country with low taxes.) Also, since diesel and petrol have similar impacts, especially from the point of view of CO2 emissions, there is no environmental reason for the two minimum rates to differ, they argued0. The Commission is proposing to raise the minimum rate on diesel up to the minimum rate on petrol. The parliament, by a vote of 447-64, supported the Commission recommendation and a report from MEP Ollie Schmidt of Sweden, but they also the minimum taxes on diesel should rise more slowly, from the current level of 302 Euro per 1000 litres to the current petrol level of 359 Euro by 2015 rather than 2012. Latvia, Lithuania, Poland, Bulgaria and Romania should have until 2016 to reach the target. Contrary to the Commission proposal, MEPs said Spain, Austria, Belgium, Luxembourg, Portugal and Greece did not need a transitional period.

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