Renewable Transport Fuel Obligation, Development Fuels Obligation, and Greenhouse Gas Emissions
Update December 2022
Important notice of the impending changes to certain fuel-related legislations, namely:
- Renewable Transport Fuel Obligation (RTFO)
- Development Fuels Obligation (DFO)
- Greenhouse Gas Emissions (GHG).
The RTFO is UK government regulation which requires all suppliers of fossil fuels to ensure that a specified percentage of the road fuels supplied within the UK are made up of renewable fuels. This is to support the government’s policy on reducing greenhouse gas emissions from vehicles by encouraging the production of biofuels that don’t damage our environment.
Changes from 1st January 2023
Within this legislation, the Government has advised that effective from 1st January 2023, the RTFO will increase to 13.078% (by share of fossil fuel). Therefore, 12.16% of the Diesel and Gas Oil prices in 2023 will be based on biofuel Platts.
In addition to this, from 1st January 2023, the DFO will increase to 1.142%, this equates to an increase from 0.68ppl in 2022 to 0.85ppl in 2023.
Areas with no changes
Due to changes in how European legislation affects the UK, there will not be any GHG charge included in the prices for 2023.
It is worth noting that the British and European specifications to which fuel is manufactured will not change as a result of the RTFO increase, DFO or GHG.
Please contact your account manager who will be more than happy to help, should you have any queries