Australian Fuel News - LPG The Answer To An Inconvenient Truth

[JoeT]

Go Through To The Most Recent Post For The Latest Fuel News

LPG's Popularity Increases

Web Wombat
9 November 2005
www.webwombat.com.au

The Australian market for new LPG Autogas-powered vehicles and installations will grow by more than 25 per cent this year, according to LPG Australia (LPG stands for liquefied petroleum gas).

The peak body for the LPG industry has forecast that an additional 40,000 Autogas vehicles will hit Australian roads by year’s end – compared to 31,706 vehicles in 2004.

There are now more than half a million Autogas-powered motor vehicles on Australian roads.

LPG Australia says almost all of the market growth has occurred since July, when petrol prices rose dramatically.

"System installers reported a massive increase in business as the gap between the price of petrol and LPG Autogas rose to as much as 90 cents a litre," said LPG Australia’s industry development manager, Phil Westlake.

Phil said that, while the price gap has closed a little in recent weeks, the petrol price shock has put Autogas "permanently back on the radar of consumers."

The growth in sales of Autogas systems has been particularly dramatic in Victoria where, in the nine months to the end of September, there were 10,490 installations – an increase of 4800 or 84 per cent over the same period of 2004. In Tasmania installations are up 64 per cent for the year to date as well.

Ford Australia says sales of its LPG-dedicated E-Gas Falcon sedans and wagons have totaled 6436 for the year to the end of October – an increase of 1968 or 44 per cent over the same period of 2004. The figures show that 10.8 cent of all Falcons sold so far this year have been E-Gas models, which is a significant proportion, and compares to 6.3 per cent last year.

"The petrol price shock prompted a large number of motorists to look for cheaper fuel alternatives – and the best and most widely available alternative fuel is Autogas," said Phil Westlake.

His view has been supported by the Victorian Automobile Chamber of Commerce (VACC) which says the Federal Government's recent move to encourage the use of ethanol in motor vehicles overlooks an established alternative fuel: "If just a fraction of these funds were directed to assisting consumers to convert their cars to LPG, we could have a significant proportion of the vehicle fleet running on LPG," says VACC executive director David Purchase.

"LPG holds the answer to a lot of our fuel-related problems. It’s environmentally friendly compared to conventional fuels, it burns cleanly and without harmful engine residues, it's produced here [in Australia] and it offers motorists huge savings," stated Mr Purchase.

LPG typically has around 20 per cent less ozone-forming potential (a measure of the tendency to generate photochemical smog), between 10 and 15 per cent lower greenhouse gas emissions and only one fifth air toxics emissions.

Australia has plentiful natural supplies and is a net exporter of LPG. For more information about LPG Autogas, visit www.lpgautogas.com.au

[DanCBJMS1988]

Good news for LPG fans everywhere.

[powervette]

after warranty ends I will surely install LPG on my car.

[JoeT]

Fuel Theft Up Along With Price At The Pump

Jonathan Pearlman 29/11/05
www.drive.com.au

Service station operators are calling for pre-paid bowsers to stop some motorists from stealing fuel.

Figures released yesterday by the NSW Bureau of Crime Statistics and Research showed the number of fuel thefts went up almost a fifth in the past year, with the highest increases in the northern beaches, Canterbury-Bankstown, the Murray region and the lower North Shore.

A spike in monthly petrol prices in September to more than $1.30 a litre was matched by the increase in the number of thefts.

The bureau's director, Don Weatherburn, said service stations in high-risk areas should consider introducing pre-paid bowsers.

"The important thing for service station managers and staff to do is to require prior payment of petrol, particularly at night, and to keep numberplate details of vehicles that take a lot of petrol and are likely to do this," Dr Weatherburn said.

However, the head of the Service Station Association, Ron Bowden, said big oil companies such as BP, Caltex, Mobil and Shell had resisted calls to introduce pre-paid bowsers.

"We support pre-paid but the major oil companies won't do it," Mr Bowden said.

"It's a competitive business and the oil companies think people would rather not use pre-paid and will just go to the service station down the road."

Mr Bowden said police were failing to crack down on fuel theft and should consider introducing infringement notices similar to those issued to shoplifters.

A police spokesman said: "There is not much police can do when it comes to drive-offs."

He said police could not devote significant resources to crimes worth $20 to $30.

A report in 2001 found the most common time for fuel theft was between 6pm and 9pm, while the most common day was Sunday.

In contrast, the quarterly figures from the bureau show falls in eight of the 16 major offence categories, including armed robbery, robbery without a weapon, break and enter, and motor vehicle theft.

But fraud rose by 8.4 per cent, largely due to an increase in motorists topping up their tanks and driving off without paying.

Armed robberies fell by 39.6 per cent in the 24 months to September 2005.

Drops were recorded in a further seven of the 16 major offence categories, while figures for malicious damage, murder, assault, and sexual assault remained stable overall.


Bowser fraud

Failure to pay and credit card fraud recorded by police at service stations:

2003-2004: 8162 incidents

2004-2005: 9651 incidents

Increase: 18.2 per cent

[JoeT]

You'll Feel Better: Fuel Prices Are Tipped To Stabilise Next Year

Bruce Brammall 16/12/05
www.carsguide.com.au

Forget tax cuts or property. The real "barbecue stopper" this year was petrol prices.

Filling up was a painful experience, especially when prices shot above $1.35 a litre in Melbourne.

It was caused by sharply higher demand from big northern-hemisphere oil users such as the US.

Trying to meet that demand caused supply bottlenecks and blockages, all made worse by the Gulf of Mexico hurricanes Katrina and Rita, which uprooted oil rigs and affected refining.

Oil has fallen significantly since, reaching $US70 a barrel in September. It is now $US55-60.

So where to next year? The good news is that petrol prices are expected to be more stable. According to economists at National Australia Bank, a better alignment of supply and demand should see prices average about $US57 a barrel in 2006.

NAB even predicts an early Christmas present next year: "Crude prices are forecast to be significantly lower by the end of 2006."

Prices will fluctuate during the year, but will probably average a little higher than recent prices about $1.15. One threat is the Australian dollar. Because oil is priced in US dollars, a fall in the Aussie dollar would cause upward pressure.

The immediate reaction of Australian motorists to the higher petrol prices this year was to drive less and buy fewer, and smaller, new cars.
Long-term car-buying decisions will need to take into account that, should petrol fall below $1 again, it's unlikely to stay there for long.

[JoeT]

BioFuel Targets Receive Strong Support

AAP 22/12/05
www.news.com.au

A Federal Government target of 350 megalitres of biofuel production by 2010 would not only be met but exceeded under a new action plan, Industry Minister Ian Macfarlane said today.

The Government announced it had received action plans from the major oil companies, members of the Independent Petroleum Group and the major retailers on the take-up of biofuels.

Collectively, they provided achievable annual milestones to underpin progress towards the Government's target of 350 megalitres of biofuels - 350 million litres, or enough to fill 350 Olympic-size swimming pools - production by 2010, Mr Macfarlane said.

He said the industry-government partnership established a clear framework and foundation for a sustainable biofuels industry in Australia.

The industry biofuels action plan would underpin the future for a sustainable biofuels industry in Australia, Mr Macfarlane said.

"Following a very positive meeting with oil majors in September, today's release of the (plan) demonstrates a significant step forward and a strong vote of confidence in the industry," he said in a statement.

Mr Macfarlane said the collective company action plans submitted by major oil companies, members of the Independent Petroleum Group and major retailers revealed a major commitment to biofuel.

"The Australian Government will monitor and review progress towards these targets on a six-monthly basis and the industry players have committed to annually update their company action plans."

He said much progress already had been made.

"For example, there are now over 400 service stations Australia-wide selling ethanol and biodiesel blends thanks to rollouts by BP, Caltex, Shell, Coles Express, United, Australian Farmers Fuel, Neumann Petroleum and Freedom Fuels."

Mr Macfarlane said the Government had led by example to encourage drivers in its vehicle fleet to use ethanol blends where available.

"My Government has removed barriers to the uptake of ethanol blends and will monitor the uptake across its vehicle fleet.

He said new investments were occurring in the biofuel supply industry involving both established and new players.

"Car manufacturers and motoring organisations are supporting Australia's biofuels industry.

"Consumer confidence, reliable supplies, competitive prices and removal of market barriers remain critical to achieving the biofuels target."

Federal Government Industry Minister Ian Macfarlane

[JoeT]

Petrol Hits Home Budgets

Katharine Murphy
21 February 2006

Household budgets are worse off than a year ago with petrol prices more than 21 cents a litre higher and mortgage repayments going towards houses that are worth less.

But while petrol is more expensive, the gap between prices paid for fuel in the city and in the bush has been closing -- from 6.7 cents to 3.7 cents -- since late last year, according to analysis by the Australian Automobile Association.

"After September 2005, motorists in regional centres copped record prices compared to city prices, so this reduction is a welcome relief for regional motorists," AAA's executive director Lauchlan McIntosh said yesterday.

The issue of the continuing price differential was raised in last week's meeting of Coalition MP's in Canberra, with outspoken Nationals backbencher Kay Hull accusing the oil giants of price fixing.

CommSec chief equities economist Craig James suggested yesterday that it was possible that retail petrol prices might have peaked in Australia -- at least for now.

Mr James said the average Australian household was now spending $167 a month on petrol, down from the peak of $185 a month last September.

A recent poll of NEWS.com.au readers found most people, or 76 per cent, were worried by petrol prices. The worry about petrol prices was greater with lower income groups, with 85 per cent of people earnings less than $75,000 agreeing or strongly agreeing that it was a worry.
Not surprisingly, several respondents, or 67 per cent, said they would use the car less as a result of higher petrol costs. The survey was conducted by polling firm Coredata and NEWS.com.au on January 24 to 30.

[JoeT]

Weak Aussie Dollar & Politics Conspire To Push Up Fuel Prices

Neil McDonald
10 April 2006
www.goauto.com.au

Motorists are facing another round of high petrol prices as the Australian dollar slips against the US dollar, forcing crude oil prices up.

Analysts are tipping that prices will reach $1.30 a litre in metropolitan areas and higher in country regions over the next few weeks.

The Australian dollar has moved downwards over the past two weeks by three cents against the US dollar, which is good for exports but not good for imports. The dollar is now around US71 cents, which represents an 18-month low against the US dollar.

The shift and any sustained subsequent pressure on crude oil prices is likely to be a concern for Australian car manufacturers as they gear up for the arrival of their new large six-cylinder sedans.

Toyota and Holden will launch important new models later this year with the Aurion and VE Commodore respectively.

Changing buyer patterns, largely brought on by higher fuel prices, have pressured the large-car segment with sales off 15.5 per cent so far this year, according to VFACTS industry figures.

Last year large-car sales slumped 15.7 per cent, but many car-makers put this down to an ageing of the large car offerings, with only the Mitsubishi 380 being a fresh new offering.

Added to the petrol price woes are global fears of sanctions by the US against Iran over its nuclear program and continuing unrest in Nigeria. Both Iran and Nigeria are vital oil-producing states with Nigeria responsible for most of Africa’s crude exports. Iran is OPEC’s number-two oil producer.

The latest round of petrol price hikes comes as a recent Australian Automobile Association (AAA) survey found the national average petrol price in January of 121.9 cents a litre was 21.5 cents a litre higher than at the same time last year.

In that period the world price of oil increased by 16.4 cents a litre.

AAA executive director Lauchlan McIntosh said the survey showed that regional motorists continue to pay the highest prices – the top 10 prices all coming from regional areas. The five highest average prices recorded in January 2006 were: Eucla, WA (136.9 cents a litre), Coober Pedy, SA (135.7), Tennant Creek, NT (133.1), Alice Springs, NT (131.4) and Carnarvon, WA (129.7).

"We were pleased to note that the average margin between the state and territory capital city and regional prices decreased from 6.7 cents a litre in October 2005 to 3.7 cents a litre in January 2006," Mr McIntosh.

Several factors affect prices from place to place, including state and territory subsidies. The Queensland Government provides the largest subsidy to motorists of 8.4 cents a litre.

Mr McIntosh said the AAA would continue to monitor regional prices closely throughout the year, particularly when the Federal Government discontinues its Fuel Sales Grant Scheme on July 1.

The scheme, which is designed to address the disparity between city and regional prices by a one, two or three cents a litre subsidy to regional retailers, is being discontinued because the Government found it difficult to ensure the scheme’s benefits are actually passed on to consumers.

Uphill Battle: Fuel prices are set to continue their upward spiral

[JoeT]

Go Light On The Litres

Wheels Staff
26 April 2006
www.wheels.carpoint.com.au

Driven by global tensions and high demand from emerging nations, fuel prices are going feral. Here's Wheels magazine's guide to how you can save dollars at the pump.

Petrol prices are hurting most motorists, with warnings that fuel costs could go even higher.

Wheels has put together a range of practical tips to help reduce your fuel bills.

“You may not be able to change the cost of the stuff, but you can reduce the impact on your pocket,” says Wheels’ editor, Ged Bulmer.

Multi-task – Forward plan so that you can cover a number of chores in the one trip. Multiple short trips from a cold start use more fuel than a single longer trip over the same distance. For shorter trips, try walking or cycling. Avoid peak-hour traffic and, if you have more than one vehicle, use the more fuel-efficient vehicle for shorter trips.

Step up a gear – Petrol engines run most efficiently between 1500 and 2500rpm, diesels even lower. To keep revs low shift up through the gears as soon as
practical and before revs reach 2500rpm. Automatics change up into higher gears more quickly if you lift off the accelerator a touch once the car gets going.

Stay cool and smooth – Drive at a safe distance from the car in front so you can anticipate changes in traffic flow. This avoids unnecessary acceleration and frequent braking that wastes fuel.

Don't be idle – Switch off the engine whenever your car is stopped or delayed for extended periods. Turning off the engine off, even for short periods, saves more fuel than is used in restarting the engine. Increased wear and tear is negligible. Today's engines don't need to be idled extensively to warm up.

Ease it – High speeds mean high fuel consumption. At 110km/h your car uses up to 25 percent more fuel than at 90km/h.

It's a drag – Additional bits on the exterior of a car, such as roof racks or bike racks, increases aerodynamic drag and fuel consumption, so are best removed when not in use. Having the windows open at speeds above 80km/h has a similar effect.

Under pressure – Check your owners manual and maintain tyre pressures at the manufacturer's recommended pressure. Underinflation reduces tyre life and increases fuel consumption by approximately three percent. Also, ensure your tyres are properly balanced and the wheels properly aligned.

Do sweat it – Air-con can suck down an extra 10 percent of fuel at speeds below 80km/h. At speeds over 80km/h, however, using air-con is better for fuel consumption than having car windows open.

Lighten the load – The more your vehicle carries, the more fuel it uses. Every 45kg of weight reduces economy by around 2 percent. Get rid of unwanted items from the boot or cargo area.

Service with a smile – Keeping your car well tuned and running efficiently helps improve economy and reduce greenhouse gases.

Cruise control – Use cruise control and top gear on highway trips to maintain a constant speed and keep engine revs low.

Clean fuel – Buy fuel from reputable outlets that sell in high volumes. Storage tanks that are refilled often are less likely to contain impurities such as rust and water.

Oils ain't oils – Change engine oil regularly. Clean oil reduces friction between moving parts. Changing your engine air filter regularly is also recommended.

Designer cars – Choose your car carefully. A vehicle that is bigger and more powerful than what you really require is using excess fuel every time you use it. Lighter vehicles are more fuel-efficient.

Smart upgrades – New cars are more fuel efficient than old cars, so consider upgrading. When choosing a new car, check out the federal government's Green Vehicle Guide – www.greenvehicleguide.gov.au – which rates new vehicles based on greenhouse and air pollution emissions.

[JoeT]

Petrol Hits Big Cars

Robert Wilson
2 May 2006
www.news.com.au

Mitsubishi's travails with its poorly performing 380 may be the most public, but all of its rivals are likely to face their own version of problems when they launch their large sedans.

Bland styling and a relatively high price have been blamed for disappointing sales of the 380 since its October launch.
But sedans such as the Holden Commodore and Ford Falcon are also being hit by sliding sales as consumers, unnerved by high petrol prices or simply uninterested in big cars, turn away from the local sedans.

To participate in a survey on petrol costs, click here.

Year-to-date figures show sales of the 380 trailing its predecessor, the Magna, by about 20 per cent for the same period last year. The fall is similar for the Commodore, although sales of the Falcon are down just 11 per cent.

Last week, Adelaide-based Mitsubishi slashed up to $6500 from the price of its 380 to stimulate sales, which have run at about half predicted levels.

Industry analyst Tony Robinson, of risk management company Sureplan, said tough sales conditions for all large cars would hit even the strongest makers and new models would offer little respite.
A new Holden Commodore and a new Toyota Aurion large car are due this year, while Ford will replace the current model of the Falcon next year or in 2008.

But Robinson said new models would not stop the long-term trend of buyers drifting away from large six-cylinder cars into smaller cars or sports utility vehicles.

"From what I'm hearing, Holden, Ford and Toyota are already revising their predictions downwards for big cars," he said.

Robinson said the 380 price cut made the car very good value but doubts remained over its resale value.

"The 380 was always good value and there's no doubting the quality of the car," he said.

"If Mitsubishi had launched at this price they wouldn't have the perception problem that now hangs over them.

[JoeT]

Tax Cuts 'Can't Ease' Petrol Pain

Belinda Tasker, AAP
10 May 2006
www.drive.com.au

A fresh round of tax cuts will not stretch far enough to help low incomes earners cope with soaring petrol prices, motoring groups fear.

A fresh round of tax cuts will not stretch far enough to help low incomes earners cope with soaring petrol prices, motoring groups fear.

Prime Minister John Howard says the government's planned across-the-board tax cuts announced in Tuesday's budget will provide much needed relief at the bowser.

Workers on average incomes stand to receive a $10-a-week tax cut and high income earners almost $120, while those on lower incomes will collect just $7.

But the RACV and NRMA motoring groups believe that while the tax cuts might help average-to-high income earners at the bowser, those on lower incomes will continue to feel the pinch.

"It will provide relief for some, but to fill up the average Ford or Holden last May as compared to this May, the difference is $20 a week," RACV manager of government relations David Cumming

"So you can immediately discount whatever tax cuts there are."

NRMA Motoring Services president Alan Evans said the average family was having to fork out about an extra $1,400 a year to cover higher petrol prices.

"So the extra tax cuts will not quite compensate them for the increase in fuel costs they are bearing," he said.

"But most probably they have had an average increase in their wages so that gets you about even."

Despite their concerns, Mr Howard hit the airwaves to reassure motorists that the tax cuts would help cover higher petrol bills.

"The best way to help is to actually give people more dollars in their pocket and this budget will offset, to a significant degree, the impact of higher petrol prices - be in no doubt about that," he told Southern Cross Broadcasting.

Mr Howard and Treasurer Peter Costello were also forced to defend their decision not to cut the 38.1 cent a litre petrol excise.

Mr Costello told Southern Cross Broadcasting that the government had cut the excise from 44 cents to 38 cents when petrol was 80 cents a litre, but the price of petrol had still increased to $1.50.

"We're not self-sufficient in oil in this country. We import more than two-thirds of our oil and most of that is coming from the Middle East.

"We import it at world prices. Whilst you've got trouble in Iraq and possible sanctions in Iran, the price of oil coming into Australia from the Middle East is just too high."

Both the RACV and Family First senator Steve Fielding attacked the government for not reducing the petrol excise.

Senator Fielding said a 10 cent reduction would have saved an average dual-income family with two children $13 a week.

"Instead, that family will get $16 extra a week in tax cuts - just $3 more," he said.

The NRMA also expressed disappointment at the absence of extra money in the budget to help develop alternative fuels.

But Mr Costello said the government already had grants in place to help companies develop biodiesel and ethanol projects.

"I believe that high oil prices will in a market sense make alternative fuels more commercial and that, particularly with preferential taxation, we will see the development of this industry, and that in fact will be a good thing," he told parliament.



City Commuters Forgotten In Budget: ALP

AAP
11 May 2006
www.drive.com.au

City commuters have been forgotten in the federal government's massive roads funding announcement in the budget, Labor says.

City commuters have been forgotten in the federal government's massive roads funding announcement in the budget, Labor says.

While the Hume Highway's dual carriageway project will be almost completed with the $800 million announced by Treasurer Peter Costello, Opposition transport spokesman Kerry O'Brien said urban roads had been largely ignored.

"Once again, Australians who live and work in our cities have been left out in the cold - record petrol prices and a pittance to fix up our urban road and rail mess," Senator O'Brien said in a statement.

"Alongside the road freight sector, commuters in our capital cities have very little to celebrate."

Mr Costello delivered an extra $2.3 billion under the AusLink land transport strategy to improve road and rail links up to 2009-10, taking total spending on the program to $15 billion.

Senator O'Brien also attacked the small amount of funding handed out for the Pacific Highway.

"The Howard government has not explained why the Pacific Highway promise is the only new major road commitment in the budget that comes with strings attached," Senator O'Brien said.

That string is that the NSW government must match the commonwealth funding.

Mr Costello said the Pacific had not been forgotten.

"It (the Pacific Highway) is not a national highway, it's an area where the NSW government and the commonwealth government are both responsible to put money in," he told Southern Cross Broadcasting.

"We're going to continue to fund the Pacific Highway but you can only fund it at the pace that construction can be done."

[JoeT]

Shell Pitches Better Mileage Fuels

Wheels Staff
11 May 2006
www.wheels.ninemsn.com.au

The oil company says its new-brew fuels and driving tips will help deliver savings at the pump.

Shell says it has brewed new formula fuels which give better fuel economy. But, it says, you’ll have to drive more efficiently and keep your car properly maintained to take full advantage of the new brews.

The so-called Fuel Economy Formula applies to Shell’s Unleaded (91 octane), Unleaded 95 and Shell Premium (98 octane) fuels and is being rolled out progressively to service stations Australia-wide from today. It was launched in New Zealand last week.

In theory, the pump price for the new fuel hasn’t changed – apart from the usual roller coaster price fluctuations. Shell says it’s absorbing the additional costs of its new formulation into the wholesale price. Nor has branding at the pump … apart from a tag on the hose (pictured).

Shell says it’s pushing the new fuel as part of a wider program designed to help drivers improve fuel economy … which is an odd message coming from a fuel company. Perhaps its being a good corporate citizen. Or it knows a good PR move when it sees when, especially when fuel prices are headline news.

Shell says it has an “…ongoing commitment to help its customers get the most out of their fuel, an effort that started with the development of fuel efficient driving practices shared by Shell under the name of FuelStretch driving tips”. (See Shell’s tips below.)

Asked if the new fuel offers any demonstrable fuel economy gains if drivers don’t change their driving habits and keep their car maintained, a spokeswoman for Shell said tests by the SAE (Society of Automotive Engineers) showed the brew offered about one percent improvement.

Fact is, the message Shell is pushing – driving for fuel economy and keeping your car maintained – is solid advice that’s hard to argue with.

Shell says its new fuels are based on the same brew used by Australia fuel economy specialists John and Helen Taylors’ when they set a new Guinness World Record for fuel efficiency. The Taylors to drive 28,970kms around the world on 24 tanks of fuel in a standard 1.6-litre VW Golf FSI. Their record was a hybrid-like 4.5L/100km, and exceeded VW’s claimed fuel consumption for the car by 55 percent.

Shell has used that 55 percent improvement – attributing it to the Taylor’s specially-brewed fuel and FuelStretch driving tips – combined it with yesterday’s average fuel prices in Melbourne, and says the Taylors would save around $450 a year at the bowser.


Shell's FuelStretch Tips:

1. Drive smoothly, avoiding heavy acceleration or braking.

2. Change up to a higher gear as early as possible as you accelerate.

3. Keep your engine well tuned, check your oil and fix any problems immediately.

4. Make sure your tyres are at the correct pressure and not under- or over inflated.

5. Keep your boot or back seat clear of unnecessary items that just add weight.

6. If you're not using your roof rack or roof box take it off.

7. Keep your windows closed, especially if you're driving at higher speeds.

8. Always use the recommended grade of oil in your engine.

9. Use cruise control on major roads and in free flowing traffic.

10. Avoid excessive idling as it burns fuel and gets you nowhere.

[JoeT]

Govt Mulls Subsidies For LPG Conversions

AAP
9 August 2006
www.drive.com.au

The government is considering subsidies for drivers to convert their cars to run on LPG, Prime Minister John Howard says.

The government is considering subsidies for drivers to convert their cars to run on LPG, Prime Minister John Howard says.

Mr Howard said the government was considering a number of practical measures to help Australians struggling under high petrol prices.

"The point about LP gas is that we have very large supplies of it and there is not a problem with its availability," he told reporters.

"We are looking at a number of things. One of the things we are looking at...is whether we should assist with the conversion costs of existing motor vehicles so that they might be useable for LP gas."

Mr Howard said these were sensible practical measures that the Australian public wanted the government to consider.

He said there had been no final decision.

"But these are things at the margin. It can't alter the central reality that we are bound by the high world price of crude oil and nothing I have heard from anybody alters that fact," he said.

The Australian newspaper reported the government was considering a $1,000 subsidy towards conversion costs to encourage greater use of LP gas.

It said drivers could save as much as $1,500 a year using LP gas.

Mr Howard said there were other measures under consideration.

"When our examination has been completed then, if out of that examination there are announcements or policy changes, then there will be an announcement made," he told reporters.

"But we mustn't lose sight of the central fact - that the cause of high petrol prices is the high world price of crude oil. It is affecting everybody and that is something that no Australian government can control."

Mr Howard said it was easy for Opposition Leader Kim Beazley and others in the community to make populist comments.

"But he knows, and I know he knows, that this is due to world circumstances that nobody can control," he said.

"But at the margin we may be able to make a difference and that is what we are looking at."

Mr Howard ruled out reducing fuel taxes between now and the election.

"We are not going to cut the excise," he said.

LP gas is due to have an excise imposed on it from 2011 but Mr Howard said that excise rate would still be dramatically lower than the excise on petrol.

He said Labor had not opposed the LP excise.

Australian Prime Minister, John Howard

[JoeT]

PM Outlines $1.6b Fuel Package

AAP
14 August 2006
www.ninemsn.com.au

Prime Minister John Howard has outlined a $1.6 billion, eight-year program to ease the pain of high petrol prices on motorists.

Outlining a multi-pronged plan, Mr Howard said from Monday the government would contribute $1,000 towards the purchase cost of new factory-fitted LPG powered vehicles.

The government will also provide a $2,000 grant to the cost of converting cars to LPG for private use.

Mr Howard said LPG would, on the fuel bill for a six cylinder vehicle travelling 15,000 kilometres a year, save around $27 a week or $1,400 a year in fuel costs.

"The estimated cost of the LPG incentives I am announcing today is $677.1 million over the eight year life of the program," he said.

"Taking into account revenue forgone, the total cost is more than $1.3 billion over eight years."

In a bid to increase ethanol-laced fuel, E10, into service stations, the government will offer up to $20,000 to stations to convert their operations to include E10.

Up to $10,000 will be provided after the conversion is complete, and another $10,000 after ethanol blend fuel sales targets are reached.

"The additional grant on reaching a sales target will provide a clear incentive for retailers to discount the price of E10 fuel," Mr Howard said.

"Recipients of grants from the ethanol distribution program will be expected to sell ethanol blends at a discount and to display the price of ethanol blends alongside price information for other petroleum products."

However, Mr Howard ruled out making ethanol a mandated part of Australian petrol.

"This government believes in consumer choice we are not persuaded to mandate the use of ethanol," he said.

Mr Howard also announced the government will spend an additional $123.5 million to extend and expand its renewable remote power generation program.

Another $76.4 million will be spent to expand Geoscience Australia's current seismic acquisition program. This will focus on new frontier offshore areas to be chosen in consultation with industry.

Almost $59 million will be spent identifying potential on-shore energy sources such as petroleum and geothermal energy.

Industry Minister Ian Macfarlane has been asked to put up a proposal to cabinet to fund a program to make Australia a leader in gas-to-liquids and coal-to-liquids research.

Mr Howard said Australia had benefited from high demand for energy sources.

But he said Australians felt the pain of high petrol prices every time they filled up their cars at the bowser.

"This is a difficult time for Australians faced with high petrol prices," he said.

"And it is only appropriate that the benefits which accrue to Australia from our substantial resource base flow beyond a narrow part of our society."

[JoeT]

Opal Fuel Doesn't Ruin Engines: Abbott

AAP
14 December 2006
www.drive.com.au

Health Minister Tony Abbott has urged Northern Territory residents to ignore the "urban myth" that non-sniffable Opal fuel damages car engines.

Recent reports suggest the government's roll-out of the fuel has been beset with problems that threaten to undermine its effort to stamp out petrol-sniffing in the territory.

Mr Abbott conceded that the government campaign was not going as smoothly as hoped.

"It's very early days, but yes there have been some problems in Alice Springs," Mr Abbott told reporters in Sydney.

The minister put the problems down to misconceptions about the performance of the fuel, which cannot be used as an inhalant.

Mr Abbott said the two incidents which supposedly proved Opal ruined engines had been investigated and proved to be unfounded.

"There was a misinformation campaign, sort of an urban myth campaign if you like, that Opal fuel would damage your engine," Mr Abbott said.

"I would certainly encourage Territorians who use Opal fuel to use it because it's a very important part of our strategy to end petrol sniffing."