Fossil fuels are almost doomed to disappear, taking into account the strict European emission regulations. Full electrification seems like the long-term solution, although efforts are also being made to develop environmentally friendly biofuels. Although its future is not yet clear, it seems quite clear that traditional gasoline and diesel will gradually be withdrawn. And users will have to get used to it, as it is said that the fuel price will rise 70% between now and 2030.
It is an estimate taken from a recent study by Deloitte, which is based on the new energy taxation that the European Union will apply to transport. From 2026 it will be included in the ETS system and that will translate into increases in fuel prices ranging from 20 to 70%. This is a distance tax rate that currently has diesel at a minimum rate of just 1.9 points due to the advantages that were registered. With the change, this fuel I would go to 3.2 And that’s where that 70% price increase comes from.
Gasoline will not be affected as much, since it currently has a rate of 3.3 and would rise to 4 points, so its price increase it would be around 20%. If we talk about the tax rate for energy content, in diesel it will go from a minimum of 10.3 to 18.2 points. In gasoline, growth will be from 14.2 to 17.7. With this change, there will be other fuels that benefit, such as biomethane, which will barely rise from 0.3 to 0.8; or hydrogen that will remain at 0.0%.
It seems that this movement is an effort to equalize the taxation of fossil fuels and also to reinforce technological neutrality. Although, on the other hand, it is questioned whether a just transition will take place due to the enormous increase for which many are not prepared. The main affected would be the professional transport sector, which still depends a lot on diesel and with its increase in cost could have problems. However, Europe seems firm with its decisions.
The electric car is the absolute priority for the next decade and the goal is decarbonise light transport at a good pace. Some studies believe that by 2030, 82% of the sector’s consumption will continue to be based on fossil fuels, but that dependency is precisely the enemy to beat. The possibility of continue to develop alternative fuels to make a double lever and reduce emissions in non-energy sectors. Although it is still early to see how this movement evolves.
Source: The Objective
