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Bus Services Operator Grant

Volume 454: debated on Thursday 14 December 2006

To ask the Secretary of State for Transport what assessment he has made of the impact of the Bus Services Operator Grant 80 per cent. diesel fuel duty rebate on biofuel uptake. (109122)

Under the Bus Service Operators Grant (BSOG) scheme operators of local bus services using biofuel currently receive a rebate of 100 per cent. of the fuel duty paid, rather than the 80 per cent. rebate paid for conventional fuels.

As stated in our document, “Putting Passengers First”, published on 12 December, we are now considering whether there is scope for reforming BSOG to tie this more directly to operators’ performance and/or environmental outcomes, and the practical issues that would be involved.