The European Parliament refused to remove diesel tax advantage over petrol according to a resolution that was passed in plenary session on the proposal to reform energy taxation. The report approved by the Parliament also provides recommendations to the Council of Ministers, which must decide unanimously for any changes to take effect.

The European Parliament's non-binding position which was adopted with 374 votes in favour, 217 against and 73 abstentions in plenary session, opposed to remove diesel tax advantage over petrol, because, according to the MEP responsible for the report, Astrid Lulling, tax neutrality on the grounds would lead to a diesel price hike. In 2008, MEPs approved another report saying that minimum taxes for diesel should rise to equal petrol tax minimums. On the other hand, MEPs support the possibility for Member States to apply reduced or zero taxes in certain areas, such as agricultural or forestry activities. However policies in these sectors must be linked to energy efficiency efforts.

Moreover, MEPs support that current energy tax exemptions or reductions for households and charitable organisations should gradually be phased out, but over a long period. In Member States where this affects energy prices, low-income households and charities should be compensated via solid and comprehensive social measures, says the text approved. The text also recommends Member States to ensure both that CO2 taxation does not apply to industry sectors that are already subject to the EU emissions trading scheme, and that sectors outside the scheme are not penalised by comparison with those that are.

The Commission proposes that energy taxes should be in two parts: the first specifically linked to CO2 emissions and the second based on the energy content of products. According to the Commission, this is intended to help the EU combat climate change, promote the use of renewable energy sources and support technological change and investment in the green economy.