Consultation outcome

Increasing the renewable transport fuel obligation buy-out price for fuel suppliers

This was published under the 2019 to 2022 Johnson Conservative government
This consultation has concluded

Read the full outcome

Detail of outcome

In summer 2020, we consulted on increasing the level of the buy-out price in the renewable transport fuels obligation (RTFO) order to protect greenhouse gas (GHG) savings from being lost. The consultation closed on 11 August 2020.

We were encouraged by the number of respondents that took part in the consultation. The majority of respondents agreed with our preferred option to increase the buy-out price from £0.30/litre to £0.50/litre.

In response, we intend to increase the RTFO buy-out price as proposed. Subject to Parliamentary timing and process, the increased buy-out price is expected to be in force for 1 January 2021.

Detail of feedback received

A summary of public feedback is included in the consultation outcome.


Original consultation

Summary

Proposes increasing the renewable transport fuel obligation (RTFO) buy-out price for fuels suppliers in order to continue greenhouse gas savings.

This consultation ran from
to

Consultation description

Suggests increasing the RTFO buy-out price for fuel suppliers and to ensure the continued greenhouse gas savings through biofuels.

Recent increases in the cost of biofuels relative to petrol and diesel mean that there is a greater risk that suppliers may ‘buy-out’ of their obligations to supply renewable transport fuel.

This would result in lost greenhouse gas savings plus impacts on the UK biofuels industry.

To combat this threat, we propose increasing the RTFO buy-out price to ensure the continued supply of biofuels and other renewable fuels.

Documents

Updates to this page

Published 28 July 2020
Last updated 25 September 2020 + show all updates
  1. Added consultation outcome, summary of responses and cost-benefit analysis.

  2. First published.

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