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Cabinet approves plan for greater use of bio-fuels in Slovakia

The Ministries of Economy and Agriculture are planning to draw up a revision to the law on the excise tax on mineral oils in order to increase the use of bio-fuels in the transport sector, the SITA wrote. It is intended to encourage more widespread use of bio-fuels in the transport sector.

The Ministries of Economy and Agriculture are planning to draw up a revision to the law on the excise tax on mineral oils in order to increase the use of bio-fuels in the transport sector, the SITA wrote. It is intended to encourage more widespread use of bio-fuels in the transport sector.

Bio-ethanol is to be redefined, allowing a reduced excise tax rate for a mixture of bio-ethanol and petrol. This stems from the draft concept for wider use of bio-fuels in Slovakia which the cabinet adopted on April 8. A zero tax rate is to be applied on bio-diesel if it is used as fuel in its pure form. Refined plant oils would also be exempt from excise tax, but only if used as fuel in pure form. The ministries are to prepare the revision by the end of the year.

The market share of alternative motor fuels in Slovakia reached about four percent last year. The share of bio-fuels was approximately 2.49 percent, followed by liquefied propane gas (LPG) with 1.26 percent and compressed natural gas (CNG) with about 0.28 percent. Fossil fuels dominated the Slovak market last year, amounting to 96 percent of the total. As the practical implementation of the bio-fuel-focused programme started only in the second half of 2006 in Slovakia, it may take up to three years to create a fully-functioning local bio-fuels market, according to the Economy Ministry’s concept.

According to the Ministry, consumption of motor fuels in Slovakia may rise to 2.5-times its current level by 2030, which would equal Austria’s current consumption. The number of cars per 1,000 inhabitants would also rise in the same period, from the current level of 280 to about 500. First-generation bio-fuels now available on the Slovak market are low percentage mixtures of bio-components and hydrocarbon fuels. Complying with the common EU energy policy, member states will have to get ready for the use of second-generation bio-fuels from 2013 to 2020. SITA

Compiled by Zuzana Vilikovská from press reports

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