Food Prices Prompt Rethink of Ethanol Policy

The Saint ReportNews 2008, saintblog0 Comments

July 10, 2008 Ottawa Citizen

BOOST TO 10% OF GAS NOW UNLIKELY
Ontario is considering turning its back on a promise to boost ethanol content in gasoline in light of the biofuel’s impact on rising food costs, Premier Dalton McGuinty said yesterday.

Mr. McGuinty questioned whether it “is in the public interest” to raise the proportion of the corn-derived additive to 10 per cent of all gasoline. The province has maintained five per cent ethanol content at gas pumps since Jan. 1, 2007.

But increased worldwide ethanol production is being blamed for soaring food prices, as rising grain prices put pressure on meat, dairy and poultry producers.

Food Prices Prompt Rethink of Ethanol Policy

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