The Petrol Retailers Association (PRA) is calling on the Chancellor to cut duty on biofuels in next week’s Budget to encourage investment in the product and the necessary infrastructure to deliver it.

PRA director, Ray Holloway said: “A cut in duty on biofuels would generate demand and help expand this nascent market. This must include a statement on sustainability, incorporating general Government support policies to assist producers’ import materials.

“The Government must also encourage the development of new European-wide standards for the renewable element of biofuels and all forms of fuel additive."

Holloway added: “We would also like the Chancellor to provide tax benefits for small businesses investing in equipment to deliver biofuels to the UK’s network of fuel forecourts. The Government has already outlined plans to encourage the building of new plants for producers, so a further move would best be provided for via changes to Excise Duty payments.”

Gordon Brown will present the Budget for 2007/08 next Wednesday, March 21st.