Drop biofuels target: oil firms
Oil company giant BP said petrol and diesel could rise at least 7c a litre at the pump if new biofuel require ments came into force on July 1. Energy and Climate Change Minister David Parker admits introducing lower emission biofuels means there will be “unavoidable” costs for consumers – alongside other mounting consumer costs associated with climate change issues and policies. BP New Zealand managing director Peter Griffiths told the local government and environment select committee yesterday the Biofuel Bill before Parliament would see the company’s costs “skyrocket”. “We will have no choice but to pass these on to our customers.” The bill requires oil companies to sell a minimum percentage of biofuels from July. Oil companies would be initially required to sell 0.53 per cent biofuels, rising to 3.4 per cent in 2012. (…) Oil companies face multimillion-dollar penalties if they fail to reach the Government targets, although the $60 million/petajoule penalty originally proposed has been reduced to a maximum of $20 million in 2010, and a maximum of $30 million for defaults in 2012. Image source: Bay of Plenty Times. > Continue.
News selected by Covalence | Country: New Zealand
