[Peakoil] Oil companies under fire over ethanol supply

[Antony Barry]

 From http://www.abc.net.au/news/newsitems/200608/s1712232.htm

Oil companies under fire over ethanol supply

Queensland Nationals Senator Ron Boswell says oil companies must  
start giving contracts out to people who want to build ethanol plants.

BP and Caltex are to discount their ethanol blended fuel, E10, so  
that it is three cents a litre cheaper than regular unleaded petrol.

Senator Boswell says it is a good start, but the problem is there are  
still only three ethanol plants in Australia.

"No one can build an ethanol plant unless they have a contract to  
produce ethanol for an oil company and those contracts are not going  
out to any new players," he said.

Greens Senator Christine Milne welcomes the discount, but questions  
the timing.

"The fact that the oil companies can now discount the fuel under the  
threat of the ACCC suggests that they could have taken this position  
earlier," she said.

Queensland Nationals president and federal MP Bruce Scott is calling  
on Shell to also reduce the cost of ethanol blended petrol.

"I'm calling now on Shell to follow the lead of the other two oil  
companies and to pass on the benefit of E10, in the terms of lower  
prices, to the consumer," he said.

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