ANTWERP, Belgium (Reuters) — European oil refiners have urged the European Union to review laws calling for increased biodiesel content in road fuel because the cost of such renewables will counter the recent plunge in crude prices and weigh on the refining sector.
“Governments should not inflict extra burden on the public by increasing the component of biodiesel that is so expensive and is heading to be twice as expensive as diesel,” said Alessandro Bordoni, Eni’s vice-president for gasoline, middle and heavy distillate trading.
“They (governments) will have to add other measures to make sure that the impact is not too negative.”
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Biodiesel prices have fallen from US$1,000 a tonne in recent months to closer to $800 a tonne. The price of benchmark European diesel barges has halved to $480 a tonne since last June, tracking the collapse in crude oil prices.
The EU’s Renewable Energy Directive calls for a 10 percent renewable energy content by 2020, up from a limit of seven percent in most European countries today. France recently increased its own limit on food-based biofuel in transport fuel to eight percent.
Biodiesel blending requirements have hurt profit margins.
