Today the Deputy Prime Minister and I met senior representatives of the major oil companies to discuss the Government's biofuels target of 350 megalitres (ML) by 2010. The Chairman of the ACCC Mr Graeme Samuel was also present.
The meeting builds on the release of the Biofuels Taskforce report and associated package on 22 September 2005.
The oil company representatives indicated that the target is achievable and that they are prepared to work with the Government to ensure that the target is reached.
At today's meeting the government and oil companies agreed to a work programme that will help achieve the Government's 350 ML biofuels target. This programme will include: oil companies individually preparing Action Plans in coming months that set out the contribution each will make to the biofuels target. biateral discussions between the oil companies and the Government to discuss the Action Plans the Government and industry developing an overarching Industry Action Plan which, to the extent possible, will include annual volumetric targets. This overarching plan will be released publicly and will be monitored to ensure progress is made in a timely manner.
It was noted at the meeting that restoring consumer confidence is critical to achieving the biofuels production target and developing a competitive biofuels market. Petrol retailers, vehicle manufacturers, motoring organisations, consumer groups and biofuel producers will play an important role in restoring consumer confidence. To help in the task of restoring consumer confidence in biofuels, the Industry Minister, Mr Ian Macfarlane will convene a meeting of relevant stakeholders in the coming weeks.
As announced last week, the Australian Government will show leadership and its support for ethanol by encouraging the use of E10 in Commonwealth vehicles where available.
At today's meeting, the issue of petrol prices was also discussed with the oil company representatives. It was noted that the current situation is overwhelmingly due to international factors including strong global demand for oil products and disruptions to refining capacity. A sustained and significant reduction in petrol prices in Australia is unlikely to eventuate unless there is a large reduction in world oil and international refined petrol prices.
The Australian Competition and Consumer Commission will be disseminating further information on factors influencing prices to petrol stations and by including more detailed pricing information on its website.