CHEMICAL manufacturing company Premiere Products is offering its company car drivers diesel vehicles - ending a 76-year petrol-only policy. The company has a 100-vehicle fleet of Ford Focuses and Mondeos, Vauxhall Astras and Vectras and Peugeot 306s and 406s and opted for a petrol-only policy because of fears over diesel particulate emissions.

'But diesel has come a long way,' said Gill Garrett, UK sales co-ordinator, and the driving force behind the initiative. 'Premiere has used unleaded fuel since its introduction and vehicles with catalytic converters as soon as they were introduced. But now we are able to offer drivers a diesel option as cars come up for renewal - although it has not been decided yet exactly what will be on offer.

'It would be a hard task to ask for a diesel-only policy,' said Garrett. 'But manufacturers must get people in touch with diesel vehicles to help companies develop their fleets. We have 60 cars to change so there is the potential for all drivers to choose diesel.' However, Garrett is not expecting everyone to convert to diesel because she believes people are not fully aware of the implications of the future benefit-in-kind tax

When the new company car tax is introduced in April 2002 the amount of tax paid will be based on a combination of a car's carbon dioxide emissions and list price, rather than a percentage of its list price and mileage. Diesel vehicles produce less CO2 than petrol-engined vehicles so tax bills will be lower. After collecting evidence on CO2 emissions, fuel savings and benefit-in-kind tax Garrett managed to convince the board of directors to change company policy.