If the initiative is approved and no transitional period is established, Europe will face a huge increase in prices from as early as 2013.
Šemeta believes that current regime, under which bioethanol is equated with gasoline and biodiesel fuel with regular diesel fuel, is irregular.
“Europe is a hostage of crude prices now. If we continue to support crude imports with taxes, we will suffer from the dictate of crude suppliers,” Šemeta told the daily.
He is certain that his initiative will change the situation. Taxes levied on biodiesel fuel and bioethanol would decline, he says. Meanwhile, Germany believes that this measure is just a way to collect more taxes.
Germany has estimated that the price of diesel fuel for its drivers will increase by 31 euro cents per liter as a result of this initiative. Some MEPs have warned that this measure would entail huge losses for the entire European car industry.