The biofuels farce rumbles on…

Government targets to increase the proportion of biofuel in standard petrol and diesel to 10% by 2020 could cost drivers an extra £2bn per year, according to new research commissioned by Friends of the Earth and Action Aid UK.

The report found that by 2020, the cost of bioethanol (added to petrol) will be 16-35 pence more expensive than petrol per litre; similarly, biodiesel will be 29-42 pence more expensive than a litre of diesel.

This means that the cost of fuel could rise by the equivalent of one litre per tank by 2020 – in addition to ‘normal’ increases caused by increases in fuel duty and oil prices. These costs are likely to be passed on directly to you and I.

In the UK, biofuels currently account for 4% of transport fuels and this requirement is set to rise to 5% in 2013. The government has said that it will consult on whether to aim for the full EU target of 10% by 2020. Given the non-existent benefits so far demonstrated by compulsory biofuel targets, we can only hope that they decide to treat the 10% target with the indifference it deserves.

As I’ve reported many times before, EU and UK government targets on the compulsory use of biofuels in road fuels make no sense at all, costing more and increasing CO2 emissions while causing food price inflation in developing countries.