Australia wants Asia to drop fuel subsidies: minister

Australian Finance Minister Lindsay Tanner said Sunday the government wanted Asian countries to drop their fuel subsidies to ease rising petrol prices.

Canberra argues that the subsidies distort demand for petrol and push up the cost of fuel and that without them, demand would lessen and lead to lower prices
Tanner said the idea of scrapping the subsidies was “very sensible” and that the Labor government of Prime Minister Kevin Rudd would push for their removal.

“We can put pressure on other countries to remove subsidies that do distort choices that people make and do reduce the extent to which they can move into other technologies,” Tanner told Australian television.

“It’s important for Australia to put pressure on these other countries, but of course we can’t force them to make those changes.”

Asia Times