Australia to provide subsidy for ultra-low sulfur diesel fuel

The Australian Federal Government will offer a sweetener to encourage the quick take-up of a new, cleaner form of diesel fuel. From January 1, 2007, the Government will pay a 1 cent per liter subsidy on the new diesel fuel, which contains 10 parts per million (ppm) of sulfur or less. The two-year subsidy will apply until the new diesel fuel becomes mandatory after December 31, 2008. Treasurer Peter Costello said the cleaner standard would deliver major environmental and health gains through reduced particle emissions that could cause respiratory problems. The move toward cleaner fuels has already cut the average level of sulfur in diesel fuel from around 1300 ppm in 2000 to 50 ppm, which was mandated at the start of 2006. (October 30, 2006)