Fleet News

LPG future depends on fuel tax cuts

THE liquified petroleum gas industry has to continue its campaign for further reductions in excise duty to secure its future, according to the new chairman of the Liquefied Petroleum Gas Association. Pascal Rambaud, managing director of Shell Gas, took over the post at the LPGA, replacing David Hepworth, Conoco's business manager LPG.

Rambaud, a former chairman of the Economic Commission of the AGPL, the European equivalent of the LPGA, said: 'I think it is realistic to aim for a further 25% reduction in duty levels, but we need also to explore other ways of making LPG in particular more competitive, perhaps through incentives on engine conversions or a reduced licence tax for gas-powered vehicles.'

He also warned that LPG must not get drawn into draft EC proposals for energy tax harmonisation on fossil fuels. 'The LPGA needs to be pro-active on this issue to ensure that, if the introduction of a harmonised energy tax is seriously mooted, LPG is not placed at a commercial disadvantage compared with other fuels and natural gas or electricity,' he said.

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