New Zealand: Govt biofuel targets predicted to raise domestic petrol prices

Shell New Zealand says biofuel quotas would substantially increase the cost of petrol. The company says a Government proposal to introduce minimum sales targets for biofuels could push the price of petrol up by 5 cents a litre.

Shell says major infrastructure modifications would be needed to meet the proposed biofuel sales requirements. It says the cost of petrol would increase as a result of the need to import biofuels or rely on a small domestic manufacturing base.
The meat and dairy industries have challenged the assumption that New Zealand could meet the biofuel targets by using byproducts from meat and milk processing.

Both industries say it would be a mistake to assume these products would be exclusively available for transport fuel.

Radio New Zealand