He said: 'We have spent considerable time looking at how to set budgets for bi-fuel vehicles but there is more uncertainty surrounding them than any other type of vehicle available.' Problem areas include the lack of refuelling sites, uncertainty over parts prices and the lack of a widely available maintenance network for gas-powered vehicles along with the hurdle of winning the support of drivers who have to take on the vehicles.
The Government also needs to make it clear that financial incentives on LPG and CNG will not be reduced in future Budgets past the next election, he said. Residual values for gas-powered vehicles are uncertain and could outweigh the incentive of the Budget's 29% cut in duty on gaseous road fuels in the Budget, compared to a 6% plus inflation rise for petrol and diesel. But the Government insists it is sending a strong message on the benefits of alternative fuels.