THE Government has again expressed its commitment to reducing the cost of ultra-low sulphur diesel. It comes as oil giant Elf Oil UK begins a nationwide programme to replace normal diesel supplied at its 500 outlets with ultra-low sulphur diesel after investing £70 million in a new refinery, in Milford Haven.

It will be rolled out to all Elf outlets by September, with no engine work needed to take the new fuel. The new diesel has 90% of its sulphur content removed and produces less nitrogen oxides and particulates. Elf claims its production of ultra-low sulphur diesel, currently 15 million litres a month, rising to 6 million litres a day as demand grows, makes it the first manufacturer to produce sufficient quantities to completely replace ordinary diesel.

Greenergy, the supplier of environmentally friendly Citydiesel, has welcomed the Government's proposals saying it expects rapid growth within the market. Andrew Owens, chairman of Greenergy UK, said: 'At the moment the ultra-low sulphur diesels make up about 4% of the market, but by the end of this year we expect it to increase to between 10 and 15%. By the end of next year this should be up to about 30 to 40% and the year 2001 should see the cleaner diesel outselling 'normal' diesel.'