Diesel prices may rise, McLoughlin suggests

Transport secretary Patrick McLoughlin has hinted the government is mulling tax rises for diesel in a move that would cease the promotion of diesel as a greener alternative to petrol.

In an interview with the London Evening Standard, McLoughlin said that the previous government’s decision to cut fuel duty on low-sulphur diesel in 2001 was a ‘mistake’, given that it produces significantly more NOx than petrol.

He said: “It is something that we’ve got to address. In fairness, they thought they were doing the right thing. The consequences of what they did was to bring about a reduction in carbon.”

The move comes as reports have criticised the rising levels of NOx in city centres, leading the government to revise its air quality strategy.
Furthermore, London Mayor Sadiq Khan is reportedly considering a ’T-Charge’ that would involve an additional £12.50 charge on top the London Congestion Charge on drivers of older diesels, planned to be rolled out for 2017.

The RAC has warned that motorists and businesses would be ‘aghast to hear the transport secretary hint at higher taxation levels for diesel vehicles’.

It said: “Many drivers and businesses have, in good faith, invested in diesel cars for this reason. What is more, diesel drivers contributed almost £17 billion in fuel duty last year and already pay some of the highest diesel prices in Europe.

“There is no doubt that action is needed to improve air quality – however, by the Government’s own admission, this needs to be tackled at a local level. There must also be a concerted effort to clean up older, more polluting bus and taxi fleets in towns and cities.

“The government can also not ignore the fact that congestion levels can exacerbate pollution levels and must consider measures that keep traffic moving.”

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