PRESS RELEASE

UK Petroleum Industry Association

28^th January 2009

Revised Renewable Transport Fuel Obligation Limits Announced

The new Renewable Transport Fuel Obligation for next 5 years has been announced today by Transport Minister Andrew Adonis.

Subject to parliamentary approval, the yearly obligation level for fuel suppliers under the RTFO will be: 3.25% for 2009/10; 3.5% for 2010/11; 4% for 2011/12; 4.5% for 2012/13; 5% for 2013/14. The new levels are in line with recent recommendations in the Gallagher Review of Biofuels advising a slowing down in the rate of increase of biofuel content in road fuels to reach 5% in 2013/14. The original RTFO targets envisaged a biofuel content of 3.75% in 2009/10, rising to 5% in 2010/11.

Also announced today was the introduction of two new eligible fuels: biobutanol and renewable diesel.

Ends

Enquiries to: Nick Vandervell Tel. 0207 269 7604

or Chris Hunt Tel. 0207 269 7601

Notes to editors:

UKPIA represents the oil refining and marketing companies operating in the UK, which also own approximately 2,152 of the UK's 9,271 service stations.
UKPIA members own and operate the nine crude oil processing refineries in the UK.
The description "biofuel" is a generic one used to describe liquid or gas fuels that are not derived from petroleum based fossils fuels or contain a proportion of non fossil fuel. Biofuels fall into two main categories- conventional biofuels produced from plants - crops such as sugar cane/beet for ethanol and palm oil, rape seed oil or re-processed vegetable oils for bio-diesel - and advanced biofuels from gasified biomass. At present, most biofuels fall into the conventional category.
More information can be found on UKPIA's website under 'Publications' - specifically 'Future Road Fuels' , and 'Biofuels in the UK'