France's increased limit on food-based biofuels in transport fuel could raise logistic and supply costs as it threatens to split the European single market for fuels, lobby groups for the car and oil industries said on Monday.
The French energy ministry issued a decree on Dec. 31 that raised the maximum level of biofuels in diesel sold at services stations in France to 8 percent by volume, higher than the EU-agreed limit of 7 percent.
FuelsEurope, representing the EU oil refining and marketing lobby, and the European Automobile Manufacturers Association (ACEA) said in a joint statement that the decree may lead to a fragmentation of the single market for road fuels.
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