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PRA comments on Transport Decarbonisation Plan

PRA 15/07/2021

Gordon Balmer, Executive Director of the Petrol Retailers Association (PRA) comments on the Government’s Transport Decarbonisation Plan.

“Following the publication of the Government’s Transport Decarbonisation Plan, the PRA is concerned that whilst the Government is signposting a low carbon future, the financial implications are yet to be addressed.

“The principle that road users should pay for the roads that they drive on is fair. Fuel duty ensures this happens because people pay more duty as they use more of the roads.  The same principle should apply to the low carbon future, which should be market led. 

“It is not yet clear which low carbon fuels, hydrogen technologies or battery forms will emerge as the most environmentally friendly and efficient. Many PRA members are still hesitating on installing charging points as the business case is not yet there. Road user charging could ensure the Government remains neutral as far as the competition between technologies is concerned, while raising sufficient revenue to plug the gap in Exchequer funding caused by any future decline in fuel duty receipts.

“Without a sensible plan where all road users pay for their upkeep, the burden will be borne by motorists who can’t afford to buy an EV which is still more expensive than an ICE vehicle. Currently EV drivers are literally getting a ‘free ride’ as they pay domestic rate VAT on the electricity they use, no excise duty on fuel and no vehicle excise duty”.

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About the RMI

The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.