Taxes for diesel and bio-diesel

EU Council Directive 2003/96/EC of October 27, 2003, re-structuring the Community framework for the taxation of energy products and electricity (ETD), in force since 2003, sets common minimum excise duty rates in EUR/liter for fuel used for motor, heating, industrial and commercial purposes. The minimum tax rate on motor diesel and diesel fuel for other purposes, liquefied petroleum gas (LPG) and natural gas is lower than that on gasoline. Historically, the aim of the lower tax on diesel was to promote internal EU trade enabled by the European haulers. This approach, already in force in European countries since the 1970s, reflected the concept of the common integrated market. Preferential taxation on diesel contributed to the dieselization trend in Europe.

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