Australia wants Asia to drop fuel subsidies
Monday, 16 June 2008
SYDNEY, June 15 (AFP): Australian Finance Minister Lindsay Tanner said today 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.
Tanner said that while Australia was benefitting from Asia's rapid development through increased demand for energy and mineral resources, at the same time the region was also demanding more petrol.
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.
Tanner said that while Australia was benefitting from Asia's rapid development through increased demand for energy and mineral resources, at the same time the region was also demanding more petrol.