Fleet News

Tax breaks vital to British Gas alternative fuel deals

INCREASED tax breaks for alternative fuels in next year's Budget hold the key to deals which could see more than 1,000 fleet vehicles going green. British Gas Vehicle Fuels is speaking to 10 companies which are expected to commit to alternative-fuelled vehicles during next year, but says that the wholehearted backing of Government is vital.

Duty on conventional fuels will rise by at least 6% above inflation every year while alternatives, including liquefied petroleum gas, remains untouched. But alternative fuels need to be made even more financially attractive to secure the backing of fleets, according to Tom Gorman, general manager of British Gas Vehicle Fuels. 'With the correct tax regime from the Government we could see a sizeable number of vehicles being converted next year,' he said.

David O'Gorman, head of transport for John Lewis Partnership said: 'There is clearly a growing pressure in the minds of the public for such a move and the time has approached where alternative fuels are now commercially viable, especially liquefied petroleum gas. The availability of LPG at refuelling pumps will control the spread of conversions among non-depot based fleets, so we will have to see whether they appear in real numbers next year.'

The pump and 4,000-litre tank cost £10,000 to install and were paid for by British Gas Vehicle Fuels. Fleet drivers travelling to London will also be able to use a new Shell Gas station opened in Victoria. The move by British Gas Vehicles Fuels into offering LPG for vehicles as well as compressed natural gas reflects the growing demand from fleets for the fuel.

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