E85 De-Boondoggle of the Day: UK Removes E85 Subsidy
Faced with a decision between a tax grab (a.k.a. closing a loophole) and environmentally-oriented political correctness, the UK government decided to take the money and run. Business Car (BC) reports that the UK's Chancellor of the Exchequer will shit can [paraphrasing] the current biofuel duty differential, That's the bit of the budget that subsidises E85 by up to 20p per litre. BC has no doubts about the decision's impact on the darling of America's corn growers, calling it "the death knell for E85 biofuel as a viable fuel in the UK." Minister Darling (true story) threw the bio-fuel boys a bone, creating the Renewable Transport Fuel Obligation. The new boondoggle calls for all road transport fuels to contain 5.75 percent biofuel by 2010, well behind America's corn-fed 10 percent mandate.