FUEL DEBATE HEATS UP


Government plans to subsidise motorists who convert their cars to liquified petroleum gas, may only benefit drivers of larger cars. The industry organisation, LPG Australia, says the expected Federal Government announcement will not include smaller cars. Rising petrol prices have forced the government to bring forward a planned one-thousand-dollar subsidy for each new-car conversion, which currently costs around two-and-a-half thousand dollars. LPG Australia's General Manager, Ray North, says motorists with large cars could save a lot of money. “That would be on the average Australian six-cylinder vehicle, and the average suburban motorist now who is battling with his or her higher fuel bill, could save potentially 30-dollars a week, 1500-dollars a year. Pay back the investment within a year, but have an immediate hip pocket purse benefit of 30-dollars a week reduced fuel costs,” Mr North said. Meanwhile Prime Minister, John Howard, says the only reason ethanol is a cheaper alternative to petrol is because there's no tax on it. The New South Wales Independent M-P, Tony Windsor, says the government should follow the US and make it compulsory to have ethanol in petrol to reduce rising fuel costs. Mr Howard has told Sydney commercial radio the government is looking at ways of increasing the use of ethanol. “I think most people in the community, while they're interested in alternative fuels and energy security, they're also very interested in the price and one of the things that is being put around about ethanol is that it is significantly cheaper. Now if it is cheaper, then it's only cheaper by virtue of the fact that there's no tax on it,” Mr Howard said. However, the Democrats are accusing the Federal Government of putting too little pressure on oil companies to introduce cheaper biofuels. Party leader, Lyn Allison, says the big firms promised last year to meet the government's biofuels target of 350 megalitres by 2010. But Senator Allison says it's impossible to measure progress because the government hasn't released any up to date figures. “The oil companies are showing again that they're prepared to thumb their noses (ignore) the government and the Prime Minister. So it's very embarrassing for him from that point of view, particularly in a climate where petrol prices are soaring. This is at least a chance to bring down the costs of petrol by one or two cents per litre,” Senator Allison said.