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Richmond Council is calling for the Chancellor to recognise the difference between bio-diesel derived from used cooking oil and bio-diesel derived from crops such as oilseed rape - and reduce duty on the former. Following a successful trial with recycled bio-diesel, the south-west London council would now like to run its entire fleet on the fuel, but is put off by the additional cost.

Transport manager Ray Cuthbert explains that the fuel is priced significantly higher than conventional  diesel, a consequence of the waste oil having to be collected in small quantities prior to being refined.

Earlier this year, the fuel it was using cost an average of 17p/litre more than normal diesel, and although increasing oil prices and a weaker dollar have combined to reduced this margin today, recycled bio-diesel is still marginally more expensive than diesel.

"We wrote to the Chancellor," he says, "but the question was ignored." MT has seen a copy of the reply from HM Treasury, and can confirm that it talks about the current 20p/litre incentive for all types of bio-diesel, and completely ignores the issue of an additional subsidy for bio-diesel derived from used cooking oil.

Councillor Serge Lourie, leader of Richmond Council, adds: "We are convinced this scheme is worth implementing. That is why I am urging the government to reconsider its position on this. "Come on Chancellor - cut a few pence from the duty on this niche clean fuel and let Richmond upon  Thames and other local authorities get on with cleaning up our boroughs. "Collectively, local government can make a huge difference - but we need your help."