Germany to drop 2009 biodiesel mandate from 6.25 to 5.25 percent; reduces planned biodiesel tax hike

In Germany, the federal government said that it will reduce the mandated blend of biodiesel for 2009 from 6.25 percent to 5.25 percent, but said that it would reduce by three cents the fuel excise tax increase scheduled for next year. Previous biofuel tax increases, aimed at ultimately creating parity between biofuels and conventional fuels, are widely credited with nearly destroying the domestic German biodiesel industry, which has been unable to compete with subsidized biodiesel from South American and the US.  The 21 cent per liter tax hike will be reduced to 18 cents.

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