New Government legislation has been passed in relation to changes to the Renewable Transport Fuel Obligation (RTFO) as part of its strategy to promote renewable transport fuels. Our category buyer for Energy Steve Sefton, explains which fuels are affected, what will change and how this will affect prices.
Which Fuels are affected?
Liquid fuels including Unleaded Petrol, Road Diesel and Gas Oil Class 2 are all affected by these changes.
What is the current situation and what will change?
Currently these fuels have a mandatory 4.7501% biofuel content. As from 15th April 2018 the biofuel content is set to increase to 7.2502%.
Will this affect prices?
In short. yes. The biofuel is higher in cost and as the mix of liquid fuels will contain a higher proportion of biofuel, then the combined Platts price will be affected. This will be an industry wide price increase. All customers, regardless of supplier are likely to be affected.
How can YPO help?
YPO will continue to provide best value by benchmarking average prices and checking supplier’s prices to ensure these continue to be calculated correctly, so that any increases are minimised.
YPO offers a fully EU compliant framework for the procurement of liquid fuels. For further information on our Liquid Fuels framework please contact Steve at [email protected].