PRA raises concerns about introduction of E10 fuel

Brian Madderson, Chairman of the PRA, is reported to have stated that the new UK government is taking a more ‘realistic and pragmatic’ approach to the introduction of E10 fuel following a recent meeting with Department of Transport officials.

The UK government wishes to introduce E10 fuel in a bid to meet emissions targets, which call for 10% of transport energy to come from renewable sources by 2020.

However, the PRA raised concerns in June that such a move would push up costs for UK fuel retailers and may force some smaller operators out of business. The PRA also noted that: ‘The proposed new standard E10 fuel is said to have lower energy content that the current E5 fuel and will be less efficient by reducing miles per gallon. To reflect this, the PRA believes that the wholesale price of fuel should be set at a proportionately lower level by reducing duty.’