Germany's farm minister was quoted on Saturday as saying he wanted pure biodiesel to remain free of tax, contradicting a statement made earlier in the week by the country's finance ministry.
"The planned taxation of blended biodiesel and (conventional) fuel would not be harmful. But the tax exemption for pure biodiesel should continue," Farm Minister Horst Seehofer told Focus magazine in an interview.
The German government said in its coalition agreement published on November 11 that it would move to end tax privileges on pure biodiesel and make blending compulsory, causing European rapeseed prices to fall sharply.
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