"The issue of pricing of ethanol and the upcoming mandate in Queensland of 5% are simply not going to affect pricing in that way" said Heather Brodie, CEO of the BAA. "Fuels and excise are a Federal Government issue in the main, and are influenced by international pricing, world supply and demand capacities, transport costs, wharfage and the like."
"The only time that ethanol prices might change will be when the Federal Government's currently legislated grants scheme changes in July 2011" said Ms Brodie. "Doing something good for the environment by using biofuels might start to cost more as the Federal excise rate effectively increases over the next five years."
"At that point in time prices may rise due to the fact that ethanol will cost more for the producer to produce - simple as that. The proof has already been seen in NSW - no price rises have been seen there just by the implementation of their mandate and as an industry we certainly expect the same to occur in Queensland."
"At the moment transportation is the third largest emitter of greenhouse gases and is responsible for more than a quarter of the world's emissions" Ms Brodie said. "Ninety eight percent of the energy used in the transportation industry still derives from fossil fuels. Immediate reductions of emissions can be achieved through the use of alternative fuel sources such as ethanol and biodiesel blends, without impacting on any food products."
"Australia has the opportunity to lead the world in the use of biofuels but at the moment we are well behind the mature positions being taken in Europe, America, Asia and Brazil."