Insisting the major oil companies meet an obligation to purchase a percentage of their fuel as biofuels would provide the momentum to dramatically increase the volume of biofuel in the market, yet maintain choice for consumers, according to Leader of the Nationals in the Senate, Ron Boswell. Senator Boswell said the Government could model a biofuel obligation on the successful current policy for renewable energy, known as the MRET. (Mandatory Renewable Energy Target). Speaking recently in North Queensland, Senator Boswell said he had told the Prime Minister that the Government should insist on all transport fuel suppliers purchasing an increasing percentage of domestically produced biofuels each year, in the same way that electricity suppliers are obliged to purchase renewable energy. "An MRET for transport fuel would provide an increasing market for biofuel producers, but importantly would continue to provide choice for motorists. If the major oil companies were obligated to purchase a percentage of biofuels then the distribution and marketing of those fuels would be at their discretion," Senator Boswell said "I envisage that the percentage would be increased each year to accommodate Australian production capacity and in response to the increasing crisis in international petroleum availability. "The major fuel companies must not be allowed to call the Government’s bluff. An enforceable biofuel obligation would ensure a greater percentage of biofuels were part of the transport fuel mix. "There are voluntary biofuel targets already in place to purchase 89 – 124 million litres of biofuel by December this year, but no evidence yet that they will be met. "Australian producers have the current capacity to produce 110 million litres of ethanol annually, yet fuel companies, mostly independents, are only purchasing around 40 million litres. "E10 fuel should be sold to the motorist at between 3-4 cents per litre cheaper than regular unleaded fuel as the ten per cent ethanol component is excise free.  Australian motorists could be saving $21 million now that is currently in the oil companies' pockets, if even our current biofuel capacity was being blended into transport fuel. Senator Boswell said there were a number of biofuel producers with production facilities on the drawing board waiting to begin, but until more momentum was provided to the industry by either Government or the major oil companies then the production of biofuels in Australia would continue to stall. ENDS Media Contact - 02 6277 3244