Ethanol studied for fuel price relief News The Australian

SOARING petrol prices will be targeted under a separate energy review flagged yesterday by John Howard.
Industry Minister Ian Macfarlane said last night his department would consider a range of energy options, including biofuels such as ethanol, to provide relief to motorists and business.
While the Prime Minster said consideration of energy alternatives would be conducted under a separate process to the nuclear inquiry's terms of reference, he said there was "merit" in considering other options.
Mr Macfarlane said he was particularly concerned that the savings generated by ethanol were not being passed on to motorists.
"We want to look at options to lessen the impact of high oil prices," Mr Macfarlane said.
"The price savings with ethanol in the main are not being passed on to motorists and that is something we will look at.
"There are alternatives, including biofuels, ethanol, LPG, LNG, CNG and hydrogen."
Liquefied natural gas and compressed natural gas offer an alternative to petrol and produce less pollution but have high production costs.
Mr Howard is believed to favour a future review into alternative transport fuels - such as ethanol and bio-diesel - in response to soaring world oil prices.
"There is merit, in light of what is happening concerning energy, in looking at other aspects of the whole energy scene, but I think nuclear warrants a separate examination for a number of reasons," Mr Howard said yesterday.
"It does have characteristics that other sectors of the energy sector don't have. We have recently had an energy white paper, although some of the basis on which that paper was drawn up, namely the price of crude oil, has shifted and I don't shut out the possibility of other examinations in relation to energy because energy is plainly one of the big challenges this country has."
One cabinet minister said the threat of high oil prices had driven the need to have a further look at alternative fuels. This is likely to please the Nationals, who are pushing for a greater take-up of ethanol as an alternative to standard petroleum.
During last month's visit to Washington, Mr Howard discussed the development of energy alternatives during talks with US Energy Secretary Samuel Bodman.
Nationals leader Mark Vaile said last month that consumers were paying the price for the lethargic promotion by oil companies of biofuels. He suggested the Government bring forward the target of using 350million litres of biofuels by 2010.