HISTORIC PRESS RELEASE : Government publishes technical paper on experience of ultra-low sulphur diesel [November 2000]

The press release issued by HM Treasury on 7 November 2000.

The Government is today publishing a paper on Ultra-Low Sulphur Diesel (ULSD), copies of which have been placed in the libraries of both Houses of Parliament. The paper outlines the environmental objectives behind the switch to ULSD and explains how the ULSD experience has worked.

In his foreword to the paper, Using the tax system to encourage cleaner fuels: the experience with ULSD, Treasury Minister Stephen Timms says:

“Many people and businesses rely on road transport as a vital part of their everyday lives and activity, particularly in rural areas. But road transport is also one of the main causes of local air pollution, particularly in urban areas.

“Since the Chancellor announced his Statement of Intent on Environmental Taxation in Budget 97, we have successfully used the tax system to achieve environmental objectives. Improving local air quality has been at the heart of our policy-making on transport taxation.

“Between 1997 and 1999, the rate of fuel duty for Ultra-Low Sulphur Diesel was steadily cut relative to conventional diesel. In the space of two years, these duty differentials succeeded in converting the entire diesel market to the cleaner fuel, cutting emissions of the most damaging local air pollutants and enabling the introduction of new, pollution-reducing technology.”