An expert hired by the Canadian Trucking Alliance is disputing claims made by the Canadian renewable fuels industry that diesel fuel buyers would save dramatically if the federal government proceeds with a proposed biodiesel mandate on July 1.
It’s entirely possible that a more robust ethanol renewable fuel standard, such as 10%, might lead to higher gasoline prices, especially since ethanol is an expensive gasoline additive, said Michael Ervin, vice president of Kent Marketing Services Ltd., a London, Ontario, petroleum consultancy.
Under the mandate, all diesel sold fuel in Canada for heating and transportation will be required to have at least a 2% on July 1.
A Regulatory Impact Analysis Statement from Canada’s federal government on the proposed biodiesel mandate concludes that biodiesel will be more expensive than regular diesel and fuel economy will be lower. The report also concluded that the net cost to taxpayers from the mandate will total $2.5 billion over the next 25 years.
CTA, a federation of the provincial trucking associations in Canada, which represents over 4,500 trucking companies, has been critical of the proposed biodiesel mandate, arguing it provides no consumer protection from higher fuel costs or damage to engines and offers virtually no environmental benefit.
CTA is urging Peter Kent. Canada’s Environment Minister, to re-think the mandate.
