Energy giant BP today called on the NSW Government to reconsider its decision to extend its policy on mandating both biodiesel and ethanol-blended petrol in NSW.

Late last year, the government of the day announced that because of serious ethanol supply shortages it was suspending any increase in the ethanol mandate and called for a review of its biofuel policy. The suspension was further extended by the incoming government.

BP today said its submission to the government’s review clearly demonstrated the failure of the policy to deliver its objectives, which included encouraging new investment in biofuel production, diversity of supply and the development of second generation biofuel technologies.

However, the government has chosen to reintroduce its mandate.

BP said that while it is a supporter of biofuels and is investing heavily in sustainably sourced first and second generation products, the decision to extend the mandate when the circumstances that led to its suspension had not changed was ill considered.

“While this decision will benefit ethanol producers, it will also diminish choice on the forecourt and raise the cost of both petrol and diesel at the pump,” said BP.