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Posted on  

August 27, 2002

Australia "considering options" for ethanol in gasoline

Sydney (Platts)--27Aug2002

The Australian federal government is "considering a range of options" for the blending of ethanol into gasoline, Prime Minister John Howard's spokeswoman said Tuesday. Speculation about the government's position on the introduction of mandatory blending of ethanol into gasoline has mounted over the past week while the federal cabinet has been discussing ways to support Australia's ailing sugar cane industry. "No decisions have been taken yet," the spokeswoman said. She declined to comment on cabinet's discussions. The federal government has pledged to increase biofuel use to 350-mil liters/year, or to around 2% of the current fuel market, by 2010. With the target in mind, the government in May launched a study of market barriers to the use of ethanol and biodiesel in transport fuels.

The study is examining options for addressing market access issues, and assessing a national mandated minimum biofuel standard, as well as voluntary arrangements. A decision based on the study results is scheduled by the end of 2002. The Australian refining industry has said it supports the use of up to 10% ethanol in gasoline but it is opposed to the government mandating its use. According to a report Tuesday in local business daily the Australian Financial Review, cabinet Monday agreed that the government would try to expedite the use of ethanol in gasoline. The paper said an interdepartmental committee would be set up to examine the revenue implications of the introduction of ethanol blending. Ethanol is exempt from the A$0.38/liter federal excise levied on gasoline.

This story was first published in Platts real-time news and market reporting service Platts Global Alert.






 

 

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