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NSW to mandate ethanol in petrol

May 11, 2007 - 3:04PM

NSW is set to become the first state to mandate the use of ethanol in petrol.

Regional Development Minister Tony Kelly said the government was working towards fulfilling its election promise on bio-fuel.

From September, fuel supplied by wholesalers to petrol stations in NSW must have two per cent ethanol content.

Mr Kelly said the introduction of biofuel would be a win for jobs, the environment and motorists.

"The time for talk on ethanol is over," he said in a statement.

"The two per cent mandate is the first step towards a broader use of ethanol and alternative fuels, currently being investigated by the premier's E-10 taskforce."

He accused the federal government of "going missing" on biofuel, saying it had been left to the states and territories to lead the way.

Mr Kelly said it was time for a mandate to be introduced nationally.

"The National Party talks and talks about biofuel, but it hasn't even managed to convince its Liberal colleagues to mandate nationally," he said.

"Australia deserves a national system and a national market but we cannot afford to wait while John Howard dithers."

© 2007 AAP
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