Diesel mysteries explained
I wish to give an explanation to some of Michael Sammut's perplexed comments regarding smoky exhaust emissions even though the illegitimate use of kerosene has disappeared (Some Unexplained Diesel Smoke Mysteries, September 4). The price of kerosene to...
I wish to give an explanation to some of Michael Sammut's perplexed comments regarding smoky exhaust emissions even though the illegitimate use of kerosene has disappeared (Some Unexplained Diesel Smoke Mysteries, September 4).
The price of kerosene to the consumer matched the price of diesel following the increase in excise tax in October 2004. This increase was deemed necessary because of widespread abuse of the minimally taxed kerosene. As a consequence, the demand for kerosene plummeted from 16,000 tons in 2004 to 5,447 tons in 2005 and to 2,000 tons in 2006.
The demand for light heating oil (LHO - a fuel with very low taxation) was quite stable until 2004 when 3,700 tons where consumed. Following the price increase of kerosene, demand for LHO in 2005 jumped to 11,000 tons (Enemalta Annual Report) or 15,789 tons (according to figures in the NSO publication Environment Statistics 2006).
There is an undeniable correlation between the switch in demand from kerosene to LHO immediately after the kerosene price hike. Without going into the polemics of which sectors abused the use of kerosene, it can be stated with a high level of certainty that these sectors are now making use of LHO to fuel their diesel engines. If any official would have us believe that the sudden surge in demand for LHO in 2005 was for heating purposes as a replacement to the pricey kerosene, than it therefore follows that most kerosene was not being made use of in an abusive manner and the price hike exercise was not needed.
We all know this was not the case. We also all know that most of the LHO is not being used for heating! LHO is finding its way into fuel tanks of the older and larger diesel-engined road vehicles and sea craft. This answers Mr Sammut's question of why there is still black exhaust smoke in spite of the increased price of kerosene.
With total disregard to legitimate users of kerosene, the price of this fuel was raised to cut down on abuse and claw back lost excise tax from diesel. The switch to LHO has left the Exchequer still empty of pocket and with a worse effect on air quality.
Raising the excise tax on kerosene has not reached its aim. Those making legitimate use of kerosene, such as home heating in winter, demand a reprieve from their unjust condemnation to higher heating bills brought about by impotent enforcement.