Fuel prices are set to rise again next year for motorists and householders -- on top of a carbon tax to be introduced in December's Budget.
Energy Minister Eamon Ryan announced yesterday that heating oil, petrol and diesel would have to contain more environmentally-friendly biofuel.
At the moment, biofuel is available to motorists with modified cars. However, the 4pc target set by the Government means non-modified cars will be able to run on the mix of ordinary fuel and biofuel.
The new regulation will mean all fuel sold in Ireland must contain 4pc biofuel sourced from crops, trees and/or fats. Moreover, the biofuels must produce 35pc less greenhouse gases than currently used by fossil fuels such as petrol and diesel.
However, although Mr Ryan claimed there would be "no cost to the taxpayer" for introducing the measure, he did not rule out a cost to consumers.
Fuel giant Maxol -- one of the first companies to sell biofuel products in Ireland -- warned last night that it would pass on any extra costs associated with a biofuel target and, ultimately, the consumer would have to pay. This will be on top of carbon tax to be introduced in December's Budget, which will also raise the cost of fuel.
Mr Ryan said the targets would decrease our dependency on importing oil products, as the €6bn annual oil bill rises and oil becomes more expensive and more difficult to find.
Maxol chief Tom Noonan warned last night that Mr Ryan's proposals were certain to end up costing motorists.
He said biofuels cost more to produce and that this added cost would ultimately be passed on to the price of petrol and diesel paid by the consumer.
"The 4pc biofuel for the motor market can be sourced in Ireland, but at a higher price. There is a price for going greener, certainly in the short-term.
"If we have a legitimate business cost, then we have to put that into the mix," he said.
But a department spokesperson said the increase in fuel prices ultimately depended on the price of oil.
While welcoming Mr Ryan's plans, Fine Gael's energy spokesman Simon Coveney also warned that the new biofuel target could do more harm to the environment unless it was thought out properly.
Mockery
"If consumers are being asked to pay more for fuel with a biofuel content in an effort to reduce emissions, then that biofuel should be produced at home. Transporting large quantities of biofuel from South America or Africa, resulting in a carbon footprint in transit, makes a mockery of climate change policy," he said.
Meanwhile, despite Mr Ryan's claims that the biofuel plans could provide alternative business for cash-strapped farmers, the IFA refused to row in behind the green proposal.
IFA president Padraig Walshe said implementing a 4pc biofuel blend would not help the stimulation of biofuel production. Instead, he said, it would encourage imports, because the multinational oil companies would source biofuel where it was cheapest.
©Independent.ie
