Petrol and diesel prices will increase slightly again this year as part of the Renewable Transport Fuel Obligation (RTFO).
The RTFO is the government’s main policy for encouraging the use of low carbon fuels in road vehicles, non-road mobile machinery and other surface transport modes. It works by setting annual obligations for fuel suppliers to require a certain percentage of their fuel to be made from sustainable low carbon fuel such as biofuel.
Last year the obligation was set at 11.8% as a share of total liquid fuel by volume but it is set to increase to 12.15% this year and to 14.6% by 2032.
According to petrolprices.com, the increase this year will likely add 0.3ppl and 0.4ppl to the price of unleaded and diesel.
Since its introduction in 2008, over 27 billion litres (equivalent) of sustainable low carbon fuel have been supplied under the RTFO. This has resulted in greenhouse gas savings of almost 54 MtCO2e, compared to the fossil fuels they replaced.
