A controversial European Commission proposal that would have seen the price of diesel jump significantly has been voted down by members of the European Parliament.
In order to reduce greenhouse gas emissions, the Commission has suggested minimum tax rates on different energy sources. Under the proposal, a new tax based on the CO2 emissions and energy content of fuels would apply across member states, at a minimum of €20 per tonne of carbon dioxide.
Speaking in Strasbourg Mayo MEP and member of the European Parliament's Transport Committee, Jim Higgins explained: "The calculated minimum tax rate of diesel would be 9% higher than the rate of petrol under this proposal from 2025 onwards. This is likely to affect diesel more than petrol because at present most countries tax diesel lightly, which makes it on average 10% cheaper at the pump even though it is 10% more expensive to produce."
"That kind of increase would cause unjustified hardship on our vehicle-owners, businesses and manufacturing industries at a time when we are trying to rejuvenate economic growth and employment levels across Europe."