MEDIA RELEASE
FOR IMMEDIATE RELEASE
15 January 2010
ETHANOL PRICING NOT A STATE ISSUE
The Biofuels Association of Australia today shrugged of recent claims that ethanol prices will skyrocket
when regular unleaded is phased out due to the impending Queensland mandate.
“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.”
The Biofuels Association of Australia Incorporated is the peak industry body representing ethanol and
biodiesel producers, feedstock suppliers, technology providers, independent and major oil companies,
equipment manufacturers, mining and construction companies and others.
Media Contact: Heather Brodie, CEO BAA, 0437 932 949 heatherbrodie@biofuelsassociation.com.au
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