The early 2008 hike in German fuel taxes on biodiesel has led to a decrease in demand putting pressure on biodiesel makers, according to Thomson Financial, which cited die Welt.
With the demand for pure biodiesel bottoming out, the source of revenue for biodiesel firms remains due to regulations that require the blending of 5% biodiesel into conventional fuels, according to the German biodiesel associations VDB and BBK’s statement to die Welt.
Die Welt reported that bigger biofuel firms like Verbio, Petrotec and Biopetrol are surviving the downtrend due to the consolidation in the industry and also the minimum-blend regulation.
The fuel tax on biodiesel has been raised to E0.15 per liter from E0.09 by the German government to bring energy taxes in line with the European Union rules, according to die Welt.