Supermarket giant Morrisons is to withdraw its B30 fuel pumps it has been revealed.
The supermarket group is also rumoured to be considering cutting its supplies of E85 fuel too, as the Government removes a subsidy for biofuels.
The only major retailer of B30 fuel, Morrison’s decision comes as the 20 pence per litre tax relief against biofuel is set to be removed in April. Currently the retailer has 144 B30 pumps scattered around the country.
The fuel is made up of 30 per cent biofuel and 70 per cent ordinary diesel. It is compatible with many diesel engines and is approved for use in some cars and vans including models from within the Renault , Vauxhall, Nissan, Peugeot, Citroen ranges.
Without the 20 pence per litre duty deduction however the cost of B30 is set to rocket and will become unfeasible for many-particularly business fleets- who turned to using the fuel to reduce running costs and emissions.
Likewise, E85 fuel-a blend of 85 per cent ethanol and 15 per cent petrol-will become more expensive to buy without the subsidy. This fuel has been successfully used by a limited number of so-called flex-fuel vehicles including the Saab 9-5 BioPower and the Ford Focus FFV. The Times speculates that the retailer could well withdraw its E85 pumps too, retailed by supermarket in 20 locations across the UK.
The Pre-Budget report last November confirmed the Government’s intention to withdraw the duty incentive effective from April 2010, a move which disappointed many within the renewable fuel industry.
In a statement on the supermarket’s website, the group confirmed: ‘The removal of the excise duty incentive would make B30 far more expensive for our customers to buy, compared to other fuels. Regrettably, we have therefore decided to withdraw from selling B30 and it will be no longer available from our filling stations.
Adding: ‘We remain committed to making quality greener fuels available to our customers as part of our aim to help with cutting carbon. We continue to urge the government to re-think its decision on removing the fuel duty incentive, putting forward the case for sustained investment in the manufacture and supply of quality bio mix fuels.
‘We apologise for any inconvenience caused to those drivers who have been buying B30, who will now need to fuel up with standard diesel (which has up to 7 per cent bio content).’
