Oil companies are the big winners in Australia's switch to LPG

In Australia, the biofuel news looks a little different than what we're used to in the United States, where the American farmer and consumers are often paraded around as the main benefactors from the ethanol boom. But Down Under, the Nationals' Senate leader (the Nationals are an Australian political party) Ron Boswell said in a speech that it was the four major oil companies who are the "big winners" in the country's push to switch cars from gasoline to LPG. Boswell said the oil companies "have not had to make one extra commitment about distributing alternative fuels to benefit from this [government aid] package. $1.37 billion of this package will directly benefit their industry and expand the market for their products." As we mentioned recently, Australia is giving motorists $2,000 to switch to LPG and LPG prices are expected to rise due to increased demand. Boswell said the "main game" would be to force oil companies to blend and distribute ethanol.
[Source: The Age]

More Information