Ruter switches many buses back to fossil diesel as a result of tax hike on biodiesel

Ruter busPhoto: Vidar Ruud / NTB
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The Oslo City Council promised to make Ruter’s public transport emission-free. But as a result of a tax hike on biodiesel, the company is switching back to fossil diesel.

According to an internal memo that the newspaper Aftenposten has been given access to, the tax increase could increase Ruter’s expenses by around NOK 750 million.

The toll on liquid biofuels was introduced by the Norwegian government last year.

Oslo Municipality is the largest owner of the public transport company Ruter. The company now plans to switch from biodiesel back to fossil diesel on many buses, initially in Akershus, Ruter confirmed.

Tax expenses

Last year, taxes cost Ruter NOK 33 million. But in a note that the law firm Kluge has written on behalf of the public transport company, it is estimated that the bill could be 23 times as large, i.e., around NOK 750 million.

The law firm concludes that Ruter can still change the contracts with the bus companies and thus allow them to switch to fossil diesel.

Neither the promise of emission-free public transport nor the revised goal of fossil-free public transport by the end of 2020 was reached, Oslo’s Environment Councilor Sirin Stav (MDG) stated.

Oslo’s goal now is for public transport to be emission-free by 2028.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayNews

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