The OSS Group, a UK waste oil recycling company, is protesting a new tax on recycled fuel oil scheduled to be introduced into law in November. Up until now, there has been no tax on recycled fuel oil but the government is seeking to add a tax of 9.29p for each litre. This is the same tax that is applied to virgin fuel oil.
The OSS Group estimates that approximately 800,000 tonnes of waste oil is produced annually in the UK. The OSS Group collects waste lubricating oil which is collected from service centres and garages, to create clean fuel oil, a processed fuel oil (PFO), which is equivalent to virgin fuel oil. The PFO is then used in the glass manufacturing and shipping industries.
According to RWM, OSS managing director Andy McNair said: “This could kill not only the market for recycled fuel oil but also remove the incentive for companies such as us to invest in leading-edge recycling technology.
“The Government wants to encourage recycling. This will have the opposite effect. At present there is a reasonable price difference between the cost of virgin fuel and waste-derived fuel. Adding this tax will increase the cost by approximately 30% and bring prices more in line with virgin fuels. The incentive for industry to recycle will be lost.”
Over the past year, Defra and the Environment Agency have been working on formulating specifications for fuel derived from clean waste.
McNair said: “Waste-derived fuel oil produced to this agreed specification should be subject to a much lower tax, if only on environmental grounds.”
For more information, visit: ossgroupltd.com
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