howard supports ethanol

Thursday July 13, 08:44 AM
Australians using more ethanol, says PM
Enlarge image

Australian motorists are using more ethanol to fuel their cars, Prime Minister John Howard says.

"We are beginning to see a shift, we are seeing a big upswing in ethanol demand," Mr Howard told Macquarie Radio.

The government subsidises the biofuels industry of which ethanol is a major part.

Mr Howard says the industry would always have government support.

"The biofuels industry will always enjoy, under our arrangements, 50 per cent lower excise than other transport fuels of a similar energy content," he said.

Mr Howard ruled out mandating ethanol.

"We don't think the circumstances justify forcing people to use something that they may judge in their commercial or other interests that it's not justifiable to do.

"I don't think government should mandate the use of commodities."