DOWNSTREAM OIL INDUSTRY WELCOMES THE EMPHASIS ON ENERGY EFFICIENCY IN CABINET OFFICE’S ENERGY POLICY REVIEW

UKPIA welcomes the emphasis placed on the need for concerted action to improve energy efficiency across all sectors, in the Cabinet Office’s Policy and Innovation Unit review on UK energy policy published today.

Director General, Malcolm Webb, commented " The report recognises that petroleum products will continue to play an important role in the road transport sector. A great deal has been achieved already and the challenge is to improve efficiency further. The level of carbon dioxide emissions from road traffic has been stabilised over the last 5 years. Motor manufacturers have made a commitment to improve average fuel consumption by 25% by 2008 and our members will be developing fuels that will enable evolving engine technologies capable of delivering this improved efficiency"

"Through a combination of new fuels and engine and exhaust clean-up technologies, key emissions from the road transport sector have halved over the last 10 years and are predicted to halve again this decade, with consequent benefits to air quality."

"In the near future, hybrid petrol and electric or diesel and electric powered vehicles promise to deliver a further improvement in efficiency and air quality. Looking further ahead, vehicles powered by fuel cells may be another solution to low carbon emissions and this is an area of research where many of our member companies are involved. "

UKPIA also welcomes the acknowledgement of the contribution of competitive energy markets to the UK economy. UKPIA members continue to provide fuel to motorists at prices, excluding duty and tax, that have been consistently amongst the cheapest in Europe over the last 5 years.