The wait to find out whether E10 petrol will be introduced looks set to continue after the latest Government announcement on the issue failed to indicate a way forward.
The trade had been waiting for a response to the consultation on the Renewable Transport Fuel Obligation, which ended in January.
During the consultation the PRA had warned the forecourt sector was not ready or able to handle the introduction of E10, but environmentalists argued it was the best way to meet the government’s commitment to reduce carbon emissions from transport.
Back in 2009, all EU member states signed up to the Renewable Energy Directive, which requires 10% of road transport energy to be from renewable sources by 2020, and the government has said that Brexit will not affect its commitments to reducing carbon emissions.
In his foreword to the response, transport minister Jesse Norman indicated that the Government favoured introducing E10, but no mechanism was proposed to carry this out.
He said: “Increasing the renewable content of petrol by moving to E10 fuel should make achieving our targets easier and potentially more cost effective, as well as providing an economic boost to domestic producers.
“The government will work with industry to facilitate any future introduction of E10 petrol, playing our part to ensure that it is managed carefully and to ensure ongoing availability of fuel suitable for older (pre-2000) petrol vehicles. In doing so, we expect the oil industry to do their part to help minimise any impacts on owners of older vehicles.”
A spokesperson for the oil industry body UKPIA said they could not comment on the Government’s intentions until it clarified what it meant by working with the industry.