Queensland Nationals Senator Barnaby Joyce dissented to a Senate Inquiry report, released today, for ignoring the price benefits of bio-fuels.

"The committee report fails to consider the impacts of ethanol and bio-diesel on fuel prices, climate change and the liquid transport energy security," Senator Joyce said.

The Economics Committee's report – Petrol Prices in Australia – was presented in the Senate today. The Senate inquiry was initiated by Senator Joyce earlier in the year when high prices were biting consumers at the bowsers.

Senator Joyce today lodged a dissenting report, drawing on the evidence ignored by the final report.

"It is well documented that petrol with 10 per cent ethanol attracts a discount of three cents per litre at the bowser, as many independent fuel retailers are now demonstrating.

"The inquiry also heard that the more ethanol blended with petrol, the more it would free up refining capacity in Australia, putting downward pressure on prices.

"It is disappointing that none of this evidence found its way in to the body of the final report.

"The best way to break the subduing influence on ethanol by the major oil companies is to mandate a target of 10 per cent ethanol in petrol over 10 years," Senator Joyce said.

The committee heard that E85 – a blend of petrol with 85 per cent ethanol, was taking off in the United States.

"The ability of ethanol blends to deliver greater savings at the pump is being hampered by the oil companies who are not serious about meeting their commitment to the Prime Minister of using 89 Mega litres by the end of 2006."