France Plans to End Tax Breaks for Diesel Fuel

French government officials have agreed to begin equalizing taxes on diesel fuel and gasoline that would erase the current tax advantage for diesel in 5-7 years, Bloomberg News reports.

Taxes on diesel fuel in France are 15 euro cents per liter lower than taxes on gasoline. Environment Minister Segolene Royal tells reporters the government intends to "neutralize" that gap because of an "obvious inconsistency" between the claimed advantages of diesels lower fuel costs and superior fuel efficiency and their impact on air quality.

Two-thirds of France's passenger vehicles and light commercial vehicles run on diesel, according to auto industry trade group CCFA. But Bloomberg says growing concern about the health impact of diesel emissions began to erode consumer enthusiasm for the engines well before Volkswagen AG admitted last month it rigged 11 million of its diesels to cheat on emission tests.

Last December Paris announced plans improve air quality by banning all diesel-powered vehicles in the city by 2020. Diesel proponents claim Euro 6 standards bring diesel emissions into near alignment with emissions from gasoline engines.