No Federal mandate for ethanol

As we stated previously petrol in New South Wales will need to contain 2 per cent ethanol by September this year. However, the Australian Prime Minister, John Howard, has stated that the Liberal Government will not mandate ethanol in petrol for all Australians. Instead Mr Howard is sitting on the fence by saying it is not good to deny people choice. The following statements from Mr Howard were recently reported on ABC News:

In those circumstances we don’t think it’s right to mandate the use of ethanol, we encourage the use of it.

We are helping petrol companies and service stations to advertise the fact that they have the E2 blend, the E10 blend rather, but we think it’s going too far to mandate it.

Meanwhile the Queensland sugar cane growers are pushing for a similar mandated ethanol fuel content as the one that is soon to become reality in NSW. However, the RACQ is taking the same view as the Prime Minister:

RACQ does not support the mandatory use of ethanol in petrol. Consumers must be allowed freedom of choice.

Given the amount of sugar cane grown in Queensland you’d think that if any state in Australia was to mandate ethanol use in petrol Queensland would be the one to do it. A number of Queensland based politicians have been backing the cane farmers for a while now so our guess is that Queensland will eventually mandate the use of ethanol.


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