<p>The European Commission said that, at present, truck drivers are substantially lengthening their routes to benefit from the varying tax rates within the 27 EU member states, a policy that is negatively impacting the environment. <br /><br />The commission is proposing to narrow the differentials on diesel, or 'gas oil,' used for commercial purposes by the haulage sector, by offering EU member states more flexibility to differentiate between commercial and non-commercial gas oil rates. The commission is also looking to increase the minimum rate of excise duties from E302 to E308 per 1,000 liters in 2014, with an intermediate rate of E359 in 1212. <br /><br />Laszlo Kovacs, the commissioner responsible for taxation and customs union, said: I am firmly convinced that European haulage markets, now fully opened to competition can no longer afford the excessive differentials in excise duties applied to gas oil used by trucks by the member states. These create significant distortions of competition among companies competing on the same markets and threaten jobs.<br /><br />Mr Kovacs added: At the same time, it is important that any proposal concerning road transport contributes to reducing its greenhouse gas emissions, since this sector alone represents 19.3% of the CO2 emissions in EU25. He also said that, as the duty changes would stop truckers covering excess mileage for cheap fuel, he is satisfied that the proposals would reduce emissions. <br /><br />According PetrolWorld.com, if national governments were to adopt the plan, 19 of the EU's 27 states would see an almost 20% rise in diesel costs. The publication commented that, in 2004, 'tank tourism' cost Germany in the region of E1.9 billion, as it is bordered by the much cheaper Czech Republic and Poland. <br /><br />Although countries such as Germany would benefit from the proposal, not all are welcoming the plans. PetrolWorld stated that Luxembourg in particular, which benefits from large truck volumes coming into the country to purchase fuel, has voiced concern.</p>