Australian Government to pressure Asia to reduce fuel subsidies

Sunday, June 15, 2008

High fuel prices at an Australian service station.

The Australian Government is to lobby Asian counties to reduce fuel subsidies and price caps in a bid to lower fuel prices, which the Government argues that fuel subsidies are artificially inflating fuel prices across the Asia-Pacific region.

Resources and Energy Minister, Martin Ferguson said that the Rudd Government does not want to be critical of countries which have used the subsidies to help promote development, however he said that "the challenge of dealing with energy subsidies in our region is a serious one".

Shadow Minister for Foreign Affairs, Andrew Robb told Sky News Australia that "it was a bit presumptuous of Australia to be lecturing Asian countries".

"The best thing for us is to look at our own affairs in the first instance, that way you then have some credibility in lecturing others".