German petrol station biodiesel sales seen at stop

Sales of biodiesel at German petrol stations have come to a virtual halt, leading German bioenergy company Verbio said on Thursday.

Biodiesel is currently more expensive than fossil diesel in Germany following a further tax rise on green fuels this year and a fall in crude oil prices.

“Tax increases in combination with the falling prices for fossil diesel have brought the B-100 (petrol station) market to a virtual standstill,” Verbio said.
Verbio said its biodiesel production in the first quarter of 2009 fell to 78,866 tonnes from 93,907 tonnes a year earlier. It has capacity to produce about 450,000 tonnes annually.

The European Union’s decision in March to impose import duties on imports of U.S. biodiesel can no longer help boost German petrol station sales because of the price disadvantage caused by the tax, Verbio said.

The company said in a statement on its quarterly results announced on Thursday it was hit by rising raw materials costs.

Reuters