Fleet News

Fleet fears over lack of alternative fuel regulations

THE majority of fleet decision-makers are concerned at the lack of regulation in the market for converting vehicles to run on alternative fuels, a major new survey has revealed.

Paragon Car Finance questioned 255 fleet managers and found that 58% or respondents are concerned at the absence of restrictions on companies setting up as LPG-converters.

The survey highlights the importance of fleet managers using reputable converters if they are paying for aftermarket conversions so their vehicles can use alternative fuels whose pump price is half the price of petrol or diesel.

According to Transport Action PowerShift, which provides grants for companies converting to alternative fuels and monitors the standards of converters, more than 12,000 vehicles had been converted using its approved partners by the start of this year.

But Government figures estimate that by the end of the decade, up to 250,000 vehicles could be running on alternative fuels.

Paragon's survey also showed that 50% of fleets had changed their policy as a result of the launch of carbon dioxide-based company car tax, while 63% expected demand for opt-out schemes to increase following the launch of the tax.

The survey also revealed that more than half of companies had experience problems with new tax codes for drivers.

Fleet News reported earlier this year that a computer error at the Inland Revenue meant hundreds of thousands of drivers received the wrong tax bills this year, despite fleet managers providing all the information needed to ensure a correct statement was issued, under the new carbon dioxide-based tax regime.

  • For copies of the report, call Pawan Pandya on 0121-712 2323.
  • Leave a comment for your chance to win £20 of John Lewis vouchers.

    Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

    Login to comment


    No comments have been made yet.

    Compare costs of your company cars

    Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

    What is your BIK car tax liability?

    The Fleet News car tax calculator lets you work out tax costs for both employer and employee