Europe, and especially Germany, reports declining diesel dependency. From a nearly 50 percent share a few years ago, the share of diesel driven cars in Germany dropped to 31 percent in 2009. Two reasons: The favorable taxation of the oil had been scrapped. And speaking of scrapped, the “Abwrackprämie, or cash for clunkers, had favored a trend towards low displacement gasoline burners. (In January, the diesel share climbed back to 40 percent in Deutschland.) Badly mauled were the manufacturers of bio (a.k.a. “veggie”) diesel.
Attracted by governmental largesse (the former red-green government promised to totally strike the tax on veggie diesel,) many companies started to produce the supposedly green oil. Now, reports Das Autohaus, [sub] around half of the 50 makers of biodiesel in Germany have gone bankrupt, or stopped the production of biodiesel.
Again, the tax man did it: Contrary to former promises, the tax for pure veggie diesel was raised to 18 cents per liter in 2009. In 2013, the allegedly environmentally friendly fuel will be taxed similarly to fossil fuel: Regular diesel carries a tax of 47 Euro cents per liter in Germany, veggie diesel will cost 45 Euro cents in contributions to the government. No wonder the makers of green fuel go into the reds.