The European Parliament is voting today on a proposal on energy taxation which by ending diesel subsidies would raise costs for consumers, according to the Fédération Internationale de l'Automobile (FIA) Region I office which represents 36 million motorists via its 106 member clubs.

While welcoming efforts to end distortions in the energy sector, FIA Region I President Werner Kraus said: “At a time of high fuel prices, it is unfair to now penalise consumers who have been encouraged to make a long-term investment in diesel cars on the basis of lower running costs and better fuel efficiency”.

“In certain countries, diesel cars already account for as high as 75% of new car purchases. Raising diesel’s cost now would send the wrong message on both the environment and price”, said Mr Kraus. Fuel prices have been escalating in the EU over the last 12 months with prices in countries such as Italy, Hungary and Poland 14-18% higher than a year ago.

Modern diesel engines are clean, quiet, refined and powerful. They are also economical, providing a 30 percent boost in fuel economy with a corresponding decline in carbon dioxide emissions compared to gasoline.

FIA Region I believes that one of the main impacts of the proposed measure will be a reduction of consumer choice as well as a significant setback in the development of diesel technologies by European manufacturers. This, in turn, could hinder efforts to meet the EU’s 2020 climate change goals.

Mr Kraus added, “Let’s not forget either that with most of our goods carried by diesel trucks and vans, consumers will take another hit in their pockets as these higher transport costs will inevitably be passed on directly to the price of goods in shops.”

Note for Editors:

Fédération Internationale de l'Automobile (FIA) Region I office

FIA Region I represents 106 Touring and Motoring Clubs in the European Union, the Middle East and Africa from its Brussels office, which total more than 36 million members. The FIA represents the interest of these members as motorists, public transport users, pedestrians and tourists.

The FIA’s primary goal is to secure a mobility that is safe, affordable, sustainable and efficient. With these aims in mind the work focuses on Road Safety, Consumer Protection, Environmental Protection, and the promotion of Sustainable Motoring.

Energy Taxation Directive

The European Parliament is voting today on a European Commission proposal to overhaul the rules on the taxation of energy products in the European Union.

The new rules aim to restructure the way energy products are taxed to remove current imbalances and take into account both their CO2 emissions and energy content. This includes the ending of the special status given to diesel fuel and unleaded petrol. Ms Astrid Lulling (EPP, Luxembourg) is the responsible rapporteur in the European Parliament.

The revised Directive would enter into force as of 2013. Long transitional periods for the full alignment of taxation of the energy content, until 2023, is intended to leave time for industry to adapt to the new taxation structure.

For more information, please contact Niall Carty, Communications Manager, FIA Region I: ncarty@fia.com or 02 282 0812