Biodiesel is losing tax subsidies in Germany. Standard gasoline and diesel fuel are taxed in Germany at 45¢ a liter. However, biodiesel — or fuel made from plant oils — has been exempted from such taxes in an effort to encourage more Germans to use it. The government started collecting a tax of 9¢ a liter on it on August 1, and the rate will increase annually by another 6¢ until 2012 when it will reach the standard 45¢ rate that applies to other fuels.
The government is expected to order fuel suppliers to start blending biodiesel with fossil fuels at the pump, but it has not yet announced the ratio.
